On January 1, 2008, Grieve Grocers Inc.s retained earnings account had a deficit (negative) balance of $52,000. During the year ended December 31, 2008, the companys second year of operations, Grieve had the following events which occurred in the sequence listed:

1. Declared and distributed a 10% stock dividend on common shares. Prior to the dividend, Grieve had 40,000 common shares issued, and the market value of the shares was $3.50 each.
2. Approved at two-for-one stock split.
3. Declared a cash dividend in the amount of $1 per share which is payable 15 days after the companys year end.
4. Income for the year before taxes was $425,000.
5. Corrected the calculation of the prior years cost of goods sold, which had been reported as $875,000 but which should have been $975,000, and adjusted the resulting tax savings.
6. Incurred an Other Comprehensive Loss of $25,000.