CarWorks Company Has 100,000 Authorized Shares of $4 Par Common

Multiple Choice

CarWorks Company has 100,000 authorized shares of $4 par common stock.The company issued 40,000 shares at $8.Subsequently,CarWorks declared a 2% stock dividend on a date when the market price was $11 a share.What is the amount transferred from the Retained Earnings account to paid-in capital accounts as a result of the stock dividend?

A) $8,800
B) $4,800
C) $3,200
D) $6,400