Davidsons Has 15,000 Shares of Stock Outstanding with a Par

Multiple Choice

Davidsons has 15,000 shares of stock outstanding with a par value of $1 per share and a market value of $45 per share.The balance sheet shows $15,000 in the common stock account,$158,000 in the capital in excess of par account,and $132,500 in the retained earnings account.The firm just announced a stock dividend of 50 percent.What is the value of the retained earnings account after the dividend?

A) $125,000
B) $117,500
C) $132,500
D) $140,000
E) $147,500