Required Information
(The following information will be used for three independent questions.)
Kit, Inc. has never held treasury shares or declared a stock dividend. The balance sheet of Kit, Inc. included the following shareholders' equity
accounts at December 31, 2020:
Preferred stock, noncumulative, 9%, $7 par, 4,000 shares authorized, 800 shares issued
Common stock, $2 par, 100,000 shares authorized, 6,400 shares issued
Additional paid-in capital—Preferred
Additional paid-in capital—Common
Retained earnings
Total shareholders' equity
$ 5,600
12,800
15,000
31,000
144,000
$208,400
On December 31, 2020, the market price of the company's common stock was $9 per share, and the market price of the company's preferred
stock was $44 per share.
Independently of the other questions, what would be the new balance in the company's Retained Earnings account if the company were to declare a 60%, common stock dividend (issuing 3,840 shares) on December 31, 2020, just after preparing the financial statement above?
Round your answer to the nearest dollar.
Answer: