When the fair value of the stock

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On December 31,2014, the stockholders equity section of Arndt, Inc. was as follows : Common Stock, particularly value $10; authorized 30,000 shares; issued and outstanding 9,000 shares- $90,000.

Additional Paid-in Capital $116,000

Retained Earnings $184,000

therefore Total Stockholders equity is $390,000

On March 31, 2015, Arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair value of the stock was $18 per share. For the 3 months ended March 31, 2015, Arndt sustained a loss of $32,000. The balance of Arndt 's retained earnings as of March 31, 2015, should be

a. $144,800

b. $143,000

c. $152,000

d. $135,800

Reference no: EM131294389

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