On September 20, 2002, Nozzle Corporation declared the distribution of the following dividend to its stockholders of record as of September 30, 2011:
• Investment in 100,000 shares of Astro Corporation stock, carrying value $600,000; fair market value on September 20, $1,450,000; fair market value on September 30, $1,575,000.
The entry to record the declaration of the property dividend would include a debit to Retained Earnings of
a. $1,575,000.
b. $1,450,000.
c. $850,000.
d. $600,000.