Ivanhoe Company owned 39500 shares of Vaughn Manufacturing. These shares were purchased in 2017 for $355500. On November 15, 2021, Ivanhoe declared a property dividend of one share of Vaughn for every ten shares of Ivanhoe held by a stockholder. On that date, when the market price of Vaughn was $27 per share, there were 355500 shares of Ivanhoe outstanding. What gain and net reduction in retained earnings would result from this property dividend? Gain Net Reduction in Retained Earnings $639900 $142200 $639900 $319950 $0 $319950 90 $0 $959850