Following is the shareholders' equity section of the balance sheet of the Sammy Ltd.: Share capital: Common shares, 100,000 share authorized 65,000 shares issued $650,000 Total share capital $650,000 Retained earnings 349,000 Total shareholders' equity $999,000 The common shares are currently selling for $15.50 per share. The balance in the Retained earnings account after the distribution of a 15% common stock dividend is: 1) $197,875 2) $801,125 3) $999,000 4) $251,500