On December 31, 2008 the Stockholders’ Equity section of Mercedes Corporation was as follows:

On March 1, 2009, the board of directors declared a 10% stock dividend and accordingly issued 900 additional shares. The stock’s fair value at that time was \($8\) per share. For the three months ended March 31, 2009, Mercedes sustained a net loss of $16,000.

Required:
What amount should the company report as retained earnings on its quarterly financial statement dated March 31, 2009?

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Common stock, par value $5; authorized 30,000 shares; issued and outstanding, 9,000 shares Additional paid-in capital Retained earnings Total stockholders' equity $ 45,000 58,000 73,000 $176,000