Pronghorn Corporation owned $16000$ shares of Sandhill Corporation. These shares were purchased in $2022$ for $$138000.$ On

November $15,2026,$ Pronghorn declared a property dividend of one share of Sandhill for every ten shares of Pronghorn held by a

stockholder. On that date, when the market price of Sandhill was $$29$ per share, there were $138000$ shares of Pronghorn outstanding.

What gain and net reduction in retained earnings would result from this property dividend?

Gain

Net Reduction in

Retained Earnings

$$0,$$$119025$

$$281175,$$$36000$

$$281175,$$$119025$

$$0$

$$400200$