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Question - Divide Company owned 20,000 shares of Queen Company that were purchased in 2016 for $500,000. On May 1, 2018, Divide declared a property dividend of one share of Queen for every 10 shares of Divide stock. On that date, there were 50,000 shares of Divide stock outstanding. The market value of the Queen stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?
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