Fisher Company has 1,000,000 share of common stock with a par value of $10 . Additional paid-in capital totals $10,000,000 and retained earnings is $12,000,000 . The directors declare a 6% stock dividend when the market value is $5 . The reduction of retained earnings as a result of the declaration will be:
a. $0.
b. $300,000.
c. $600,000.
d. $500,000.
e. None of the answers are correct.
B
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