On July 1, Sutter created a living trust by transferring the legal title to 500 shares of Pine Corporation common stock to Ellis as trustee and named Clay as the sole beneficiary. The trust granted Ellis broad powers to sell and repurchase stock as she saw fit. On June 25, a few days before the trust was created, Pine Corporation distributed cash dividends of $1 per share on its common stock.

On July 15, Ellis sold the common stock for $105 per share, which was $5 more than the purchase price that Sutter had paid. Ignoring taxes, how much is in the principal of this trust on July 16?

A. $ 2,500 B. $50,000 C. $52,500 D. $53,000 AppendixLO1