Question $19$

The stockholders' equity section of Milroy Corporation as of December $31,2003,$ was as follows: Common stock, par value $$2$;

authorized $20,000$ shares; issued and outstanding $10,000$ shares $$20,000$ Paid$-$in capital in excess of par $30,000$ Retained earnings

$90,000$$$140,000$ On March $1,2004,$ the board of directors declared a $10\%$ stock dividend, and accordingly $1,000$ additional shares

were issued. On March $1,2004,$ the fair market value of the stock was $$6$ per share. For the two months ended February $28,200A,$

Milroy sustained a net loss of $$10,000.$ What amount should Milroy report as retained earnings as of March $1,2004?$

$$74,000.$

$$88,000.$

$$78,000.$

$$84,000.$