Waterway Industries owned 22500 shares of Carla Vista Co. purchased in 2017 for $618750. On December 15, 2020, Waterwaydeclared a property dividend of all of its Carla Vista Co. shares on the basis of one share of Carla Vista for every 10 shares of Waterway 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 Carla Vista shares held by Waterway was $910000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of

$910000.

$618750.

$291250.

$0.

B.

On December 31, 2020, the stockholders' equity section of Sunland Company, was as follows:

Common stock, par value $10; authorized 30000shares;
	issued and outstanding 9000 shares	$ 90000
Additional paid-in capital		110000
Retained earnings		186000
Total stockholders' equity		$386000

On March 31, 2021, Sunland declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair value of the stock was $18 per share. For the three months ended March 31, 2021, Sunland sustained a net loss of $40400. The balance of Sunlands retained earnings as of March 31, 2021, should be

$129400.

$145600.

$138400.

$136600.