Sunland Comparyy has 621000 shares of $10 par value common stock outstanding. During the year Sunland declared a 15% stock dividend when the market price of the stock was $49 per share. Two months later Sunland declared a $0.40 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by: $4850010. $4564350 $285660 $580000. On January 2, 2021, for past services, Swifty Corporation granted Nenn Pine, its president, 30500 stock appreciation rights that are exercisable immediately and expire on January 2, 2022. On exercise, Nenn is entitled to receive cash for the excess of the market price of the stock on the exercise date over the market price on the grant date. Nenn did not exercise any of the rights during 2021 . The market price of Swifty's stock was $30 on January 2, 2021, and $45 on December 31, 2021. As a result of the stock appreciation rights, Swifty should recognize compensation expense for 2021 of $183000 $50. $457500. $915000