Reference no: EM132588471

On December 31, 2017, the stockholders' equity section of Sheridan Company, was as follows:

Common stock, par value $10; authorized         35000 shares;

issued and outstanding 10500 shares                $ 105000

Additional paid-in capital                                   111000

Retained earnings                                            186000

Total stockholders' equity                                $402000

Question 1: On March 31, 2018, Sheridan declared a 10% stock dividend, and accordingly 1050 additional shares were issued, when the fair value of the stock was $17 per share. For the three months ended March 31, 2018, Sheridan sustained a net loss of $39400. The balance of Sheridan's retained earnings as of March 31, 2018, should be

Option a) $146600.

Option b) $128750.

Option c) $139250.

Option d) $136100.