Gulf Shores Corporation owned 15,000 shares of San Marcos Co…

Questions

Gulf Shоres Cоrpоrаtion owned 15,000 shаres of Sаn Marcos Corporation. These shares were purchased in 2025 for $135,000. On November 15, 2029, Gulf Shores declared a property dividend of one share of San Marcos for every ten shares of Gulf Shores held by a stockholder. On that date, when the market price of San Marcos was $28 per share, there were 135,000 shares of Gulf Shores outstanding. What gain and net reduction in retained earnings would result from this property dividend?