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28/04/2020, 2:36 PM
Arm Corporation owned 10,000 shares of Sand Corporation.
These shares were purchased in 2007 for $90,000. On
November 15, 2011. Arm declared a property dividend of
one share of Sand for every ten shares of Arm held by a
stockholder. On that date, when the market price of Sand
was $14 per share, there were 90,000 shares of Arm
outstanding. What gain and net reduction in retained
earnings would result from this property dividend?
Select one: