On September 20,2014,Shunt Corporation Declared the Distribution of the Following

On September 20,2014,Shunt Corporation declared the distribution of the following dividend to its stockholders of record as of September 30,2014:
•Investment in 100,000 shares of Ramen 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.

Correct Answer:

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