A company with 81,931 authorized shares of $8 par common stock issued 46,534 shares at $14 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price was $31 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.

$7,445

$21,406

$28,851

$50,797