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Lucid Company declared a property dividend of 37,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $2 per share.

Lucid Company declared a property dividend of 37,000 shares of $1 par Polk Company common stock. The Polk stock was purchased for $2 per share. Market value was $9 per share on the declaration date and $10 per share on the distribution date. What is the amount of the dividend?

a) $333,000.
b) $407,000.
c) $74,000.

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