Aggie Corp. began operations on 1/1/15 and issued all of its preferred and common shares...
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Aggie Corp. began operations on 1/1/15 and issued all of its preferred and common shares at that time. The following information pertains to Aggie Corp. for the year ended December 31, 2016 (i.e., year 2 of operations):
Balance Sheet (partial)
| Preferred stock, 5% cumulative, $10 par | $400,000 |
| Additional paid-in capital - preferred | 800,000 |
| Common stock, $1 par | 1,000,000 |
| Additional paid-in capital - common | 5,000,000 |
| Treasury stock (50,000 shares) | 400,000 |
| Beginning Retained Earnings (1/1/16) | 800,000 |
Additional Information
| Net Income for 2016 | $5,000,000 |
| Dividends declared and paid on December 31, 2016 | 250,000 |
On 6/30/17 Aggie Corp decides to issue a stock dividend of 500,000 shares to its common stock shareholders. On that date, Aggie Corp shares had a market value of $12 per share.
What amount (if any) should be debited to 'Retained Earnings' at the time of this stock dividend?
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