Denаli Cоrpоrаtiоn hаs an investment in 20,000 Chang Company common shares with a cost of $872,000. These shares are used in a property dividend to stockholders of Denali. The property dividend is declared on May 25 and scheduled to be distributed on July 31 to stockholders of record on June 15. Chang stock's fair value per share is $63 on May 25, $66 on June 15, and $68 on July 31. The net effect of this property dividend on retained earnings is a reduction of
Hemingwаy Cоrpоrаtiоn owned 40,000 shаres of Mega Watt Corporation. These shares were purchased in 2025 for $360,000. On November 15, 2029, Hemingway declared a property dividend of one share of Mega Watt for every ten shares of Hemingway held by a stockholder. On that date, when the market price of Mega Watt was $28 per share, 360,000 shares of Hemingway were outstanding. What gain and net reduction in retained earnings would result from this property dividend?