The equity sections for Fairhaven Group at the beginning of the year $($January $1)$ and end of the year $($December $31)$ follow.

Stockholders' Equity $($January $1)$

Common stock $$10$ par value, $130,000$ shares authorized, $50,000$ shares issued and outstanding

Paid$-$in capital in excess of par value, common stock

Retained earnings

Total stockholders' equity

Stockholders' Equity $($December $31)$

Common stock$-$ $$10$ par value, $130,000$ shares authorized, $58,010$ shares issued, $5,500$ shares in treasury

Paid$-$in capital in excess of par value, common stock

Retained earnings $($ $$110,000$ restricted by treasury stock$)$

Less cost of treasury stock

Total stockholders' equity

The following transactions and events affected its equity during the year.

January $5$ Declared a $$1\mathrm{.}20$ per share cash dividend, payable on January $10.$

March $20$ Purchased treasury stock for cash.

April $5$ Declared a $$1\mathrm{.}20$ per share cash dividend, payable on April $10.$

July $5$ Declared a $$1\mathrm{.}20$ per share cash dividend, payable on July $10.$

July $31$ Declared a $18\%$ stock dividend when the stock's market value was $$22$ per share.

August $14$ Issued the stock dividend that was declared on July $31.$

October $5$ Declared a $$1\mathrm{.}20$ per share cash dividend, date of record october $10.$

Calculate the amount of retained earnings to be capitalized as a result of the stock dividend.

Dates: January $01$

to:

December $31$