Midwest Electric recently declared a 20 percent stock dividend. On the date of the stock dividend Midwest had 16 million shares outstanding priced at $46 per share in the market. An accounting entry was required on the balance sheet transferring some retained earnings to the common stock account. Retained earnings were $280 million prior to the transaction. (See the table below.)

Stockholders Equity Accounts (millions of dollars) (Before Stock Dividend)
Common Stock (16 million shares outstanding, $2 par)	$32
Additional Paid-in capital	88
Retained Earnings	280
Total common stockholders equity	400

1. What was the dollar amount of retained earnings after the transfer?

A.		$130m
B.		$131.25m
C.		$132.8m
D.		$134.4m
E.		$145m

What was the dollar amount of par value after the transfer?

A.		$33.8m
B.		$36.8m
C.		$38.4m
D.		$44.8m
E.		$50.2m