A company with 119,947 authorized shares of $8 par common stock issued 43,923 shares at $13 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price was $22 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Select the correct answer.

$52,777

$12,298

$19,326

$7,028