The Zeller Corporation's stockholders' equity accounts have the following balances as of December 31, 2016:

Common stock, $10 par (30,000 shares issued
and outstanding)	$ 300,000
Additional paid-in capital	2,000,000
Retained earnings	5,700,000
Total stockholders' equity	$8,000,000

On January 2, 2017, the board of directors of Zeller declared a 5% stock dividend to be distributed on January 31, 2017. The market price per share of Zeller's common stock was $30 on January 2 and $32 on January 31. As a result of this stock dividend, the retained earnings account should be decreased by

$48,000.

$45,000.

$15,000.

zero; only a memorandum entry is required.

Answer rating: 100% (QA)

Retained earning decreased by mar... View the full answer