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What is the amount of the debit to retained earnings

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Question - The stockholders' equity of Benton Company at July 31, 2007 is presented below:

Common stock, par value $20, authorized 400,000 shares; issued and outstanding 160,000 shares $3,200,000

Paid-in capital in excess of par $160,000

Retained earnings $650,000

Total Stockholders' equity $4,010,000

On August 1, 2007, the board of directors of Benton declared a 15% stock dividend on common stock, to be distributed on September 15th. The market price of Benton's common stock was $35 on August 1, 2007, and $38 on September 15, 2007. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

a. $800,000.

b. $840,000.

c. $912,000.

d. $600,000.

Reference no: EM131783693

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