Refer to Exhibit 16-1 , On January 2, 2017, the board of directors of Zeller declared a 30% stock dividend to be distributed on January 31, 2017. The market price per share of Zellers common stock was $30 on January 2 and $32 on January 31. As a result of this stock dividend, the retained earnings account should be decreased by

Exhibit 16-1 The Zeller Corporation's stockholders' equity accounts have the following balances as of December 31, 2016: Common stock, $10 par (30,000 shares issued and outstanding) Additional paid-in capital Retained earnings Total stockholders' equity $ 300,000 2,000,000 5,700,000 $8,000,000 Refer to Exhibit 16-1. On January 2, 2017, the board of directors of Zeller declared a 30% stock dividend to be distributed on January 31, 2017. The market price per share of Zeller's common stock was $30 on January 2 and $32 on January 31. As a result of this stock dividend, the retained earnings account should be decreased by zero; only a memorandum entry is required. $90,000 $288,000. $270,000