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The stockholders' equity section of Gunkel Corporation as of December 31, 2017, was as follows: Common stock, par value $2; authorized 20,000 shares; issued and
The stockholders' equity section of Gunkel Corporation as of December 31, 2017, 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 | 85,000 |
$135,000 |
On March 1, 2018, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2018, the fair value of the stock was $6 per share. For the two months ended February 28, 2018, Gunkel sustained a net loss of $15,000.
What amount should Gunkel report as retained earnings as of March 1, 2015?
$61,000. |
$71,000. |
$67,000. |
$77,000. |
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