Question: On December 1 , Nilo Corp. declared a property dividend of marketable securities to be distributed on December 3 1 to stockholders of record on

On December 1, Nilo Corp. declared a property dividend of marketable securities to be distributed on December 31 to stockholders of record on December 15. On December 1, the marketable securities had a carrying amount of $60,000 and a fair value of $78,000. What is the effect of this property dividend on Nilo's retained earnings, after all nominal accounts are closed?
A.
$18,000 increase.
B.
$0
C.
$78,000 decrease.
D.
$60,000 decrease.

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