36. Stinson Corporation owned 30,000 shares of Mattie Co. These shares were purchased in 2007 for 270,000. On November 15, 2011, Stinson declared a property dividend of one share of Mattie for every ten shares of Stinson held by a stockholder. On that date, when the market price of Mattie was 14 per share, there were 270,000 shares of Stinson outstanding. What amount of gain and net reduction in retained earnings would result from this property dividend?

Net Reduction inGainRetained EarningsA.0243,000B.0378,000C.135,000108,000D.135,000243,000