On June 30, 2018, Dakota, Inc. showed the following data on the equity section of their balance sheet:



On July 1, 2018, the company declared and distributed a 11% stock dividend. The market value of the stock at that time was $20 per share. As a result of this stock dividend, what is the balance of Retained Earnings?

A) $770,580

B) $951,000

C) $981,780

D) $621,200


D) $621,200
Explanation: Stock Dividend = 149,000 × $20 × 11% = $327,800
Balance in Retained Earnings = $949,000 - $327,800 = $621,200

Business

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