Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
Gilligan Corporation was established on February 15,2014.Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock.As of December 2016,Gilligan's stockholders' equity accounts report the following balances:
At the end of 2016,Gilligan decides to issue a 5% stock dividend.
At the time of issue,the market price of the stock was $22 per share.

-Calculate the number of shares outstanding after the stock dividend is issued.

A) 57,750 shares
B) 55,000 shares
C) 52,250 shares
D) 525,000 shares