What amount should Waterway report as retained earnings

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Question - The stockholders' equity section of Waterway Industries as of December 31, 2020, was as follows:

Common stock, par value $2; authorized 19300 shares; issued and outstanding 9650 shares $19300

Paid-in capital in excess of par 33000

Retained earnings 88000

$140300

On March 1, 2021, the board of directors declared a 16% stock dividend, and accordingly 1544 additional shares were issued. On March 1, 2021, the fair value of the stock was $7 per share. For the two months ended February 28, 2021, Waterway sustained a net loss of $15200.

Required - What amount should Waterway report as retained earnings as of March 1, 2021?

a. $61992.

b. $66624.

c. $75692.

d. $80324.

Reference no: EM132561225

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