Question: On December 31, 2014, the Stockholders' Equity section of Mercedes Corporation was as follows:
On March 1, 2015, the board of directors declared a 10% stock dividend and accordingly issued 900 additional shares. The stock's fair value at that time was $8 per share. For the three months ended March 31, 2015, Mercedes sustained a net loss of $16,000.
Required: What amount should the company report as retained earnings on its quarterly financial statement dated March 31, 2015?