Randall's Has 34,000 Shares of Stock Outstanding with a Par

question 1

Multiple Choice

Randall's has 34,000 shares of stock outstanding with a par value of $1 per share. The market value is $23 per share. The balance sheet shows $152,000 in the capital in excess of par account, $34,000 in the common stock account, and $67,500 in the retained earnings account. The firm just announced a 5 percent (small) stock dividend. What will be the balance in the retained earnings account after the dividend?

• A) $28,400
• B) $29,500
• C) $30,500
• D) $27,800
• E) $32,500

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