Mactile Inc. owned 100,000 shares of Sherwood Corp. Mactile originally purchased these shares in 2013 for $8 per share. In 2019, Mactile declared a dividend which would result in all 100,000 shares of Sherwood being distributed to Mactile stockholders. At that time, the fair value of Sherwood stock was $11 per share. To record this property dividend, how much gain should Mactile recognize and how much is the debit to Retained Earnings?

no gain; $800,000 debit to Retained Earnings

no gain; $1,100,000 debit to Retained Earnings

$300,000 gain; $800,000 debit to Retained Earnings

$300,000 gain; $1,100,000 debit to Retained Earnings