Problem - On December 31, 2011, the stockholders' equity section of Addyson Co. was as follows:
Common stock, par value $10; authorized, 60,000 shares; issued and outstanding, 18,000 shares - $180,000
Additional paid-in capital - 232,000
Retained earnings - 192,000
Total stockholders' equity - $604,000
On March 31, 2012, Addyson declared a 10 percent stock dividend, and accordingly 1,800 additional shares were issued, when the fair market value of the stock was $16 per share. For the three months ended March 31, 2012, Addyson sustained a net loss of $64,000. The balance of Addyson's Retained Earnings as of March 31, 2012, should be
A) $99,200.
B) $110,000.
C) $112,000.
D) $128,000.