Gulf Oil Inc. reported the following common equity account in its balance sheet. The company just declared a 10 percent stock dividend when the market value of its stock was $20 per share. What is the capital surplus account after the 10 percent stock dividend?

Common stock ($1 par value)	$ 406,000
Capital Surplus	1,340,000
Retained earnings	3,427,000
Total owners equity	$ 5,173,000

$1,380,600

$568,600

$1,218,000

$2,111,400

$3,467,600