Pierson corporation owned 10000 shares of hunter

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Pierson Corporation owned 10,000 shares of Hunter Corporation. These shares were purchased in 2007 for $90,000. On November 15, 2011, Pierson declared a property dividend of one share of Hunter for every ten shares of Pierson held by a stockholder. On that date, when the market price of Hunter was $14 per share, there were 90,000 shares of Pierson outstanding. Assuming that Hunter shares have not been market to market since acquisition, what gain and net reduction in retained earnings would result from this property dividend, respectively?

Reference no: EM13570622

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