CBA Inc Has 400,000 Shares Outstanding with a $5 Par Value

Multiple Choice

CBA Inc. has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. What will be the "common stock" account after the stock dividend?

A) $2,816,000
B) $2,120,000
C) $3,496,000
D) $2,000,000