CBA Inc. has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%.

What will be the "capital in excess of par account" value after the stock dividend?

Multiple Choice

• $3,496,000

• $2,685,000

• $7,685,000

• $2,385,000