Question Content Area

A company with 113,849 authorized shares of $4 par common stock issued 43,387 shares at $16. Subsequently, the company declared a 2% stock dividend on a date when the market price was $25 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend? When required, round your answer to the nearest dollar.

a.$56,925

b.$21,694

c.$3,471

d.$18,223