On July 1, 20x5, Blaylock Corporation had 40,000 shares of its $100 par value common stock outstanding. On July 2, 20x5, Blaylock declared a 15 percent stock dividend to be distributed on August 6, 20x5, to shareholders of record on July 16, 20x5. What amount of retained earnings should be transferred to contributed capital because of this dividend?

None

Market value of the stock at the date of distribution multiplied by the number of dividend shares

Market value of the stock at the date of declaration multiplied by the number of dividend shares

Par value per share multiplied by the number of dividend shares

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