Use the following information to answer question 41 and 42. On January 1, 2018, Tarow Corporation had 80,000 common shares, recorded at $600,000, and retained earnings of $1,000,000. During the year, the following transactions occurred: Apr. 2 Issued 5,000 common shares at $20 per share. June 15 Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10. Aug. 21 Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20. The shares were trading for $22 a share on August 21, $24 on September 5, and $26 on September 20. Nov. Issued 3,000 common shares at $25 per share. Nov. 15 Declared and issued a 2-for-1 stock split Dec. 20 Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10. Dec. 31 The net income for the year of 2018 is $20,000 The amount of total dividends declared on common shares on August 21, 2018 is: $88,000 $93,500 Nov. 1 Issued 3,000 common shares at $25 per share. Nov. 15 Declared and issued a 2-for-1 stock split Dec. 20 Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10. Dec. 31 The net income for the year of 2018 is $20,000 The amount of total dividends declared on common shares on August 21, 2018 is: $88,000 $93,500 $110,500 $35,000 Question 42 (2 points) The balance of retained earnings as at December 31, 2018 after the end-of-year closing is: $1,000,000 $829,900 O $877,575 $849,900