XYZ Company had 400,000 authorized shares of $8 par common stock. It issued 120,000 of these shares at $14 per share.

There were no shares held in treasury. Later, when the market price of the stock was $22 a share, XYZ declared a 6% stock

dividend. Compute the amount transferred from the Retained Earnings account to Contributed Capital accounts as a result of

the stock dividend.

a. $158,400

b. $100,800

c. $57,600

d. $528,000

Please explain how you determined your answer.