Chapter 1, Problem 17DQ

turnover ratio.

can you please solve this

On October 1, Year 3, Sheyer Corp. declared a scrip dividend of $600,000 and issued promissory notes to its stockholders in lieu of cash.  The corporation has sufficient retained earnings.  The notes, which were dated October 1, Year 3, had a maturity date of September 30, Year 4 and a 5% interest rate.  What is the effect of this scrip dividend on Sheyer's Year 3 retained earnings after all nominal accounts are closed?      A. $0        B. $600,000 decrease.        C. $607,500 decrease.        D. $630,000 decrease.