Vaughn Manufacturing owned 22300 shares of Cullumber Company purchased in 2017 for $613250. On December 15, 2020, Vaughn declared a property dividend of all of its Cullumber Company shares on the basis of one share of Cullumber for every 10 shares of Vaughn common stock held by its stockholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Cullumber shares held by Vaughn was $885000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of

$0.

$885000.

$271750.

$613250.