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Question - The stockholders' equity section of Gunkel Corporation as of December 31, 2017, was as follows:
Common stock, par value $2; authorized 20,000 shares;
issued and outstanding 10,000 shares
Paid-in capital in excess of par
30,000
Retained earnings
85,000
$135,000
On March 1, 2018, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2018, the fair value of the stock was $6 per share. For the two months ended February 28, 2018, Gunkel sustained a net loss of $15,000.
What amount should Gunkel report as retained earnings as of March 1, 2015?
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