Gibbs corporation owned 20,000 shares of oliver corporation's $5 par value common stock. these shares were purchased in 2009 for $240,000. on september 15, 2013, gibbs declared a property dividend of one share of oliver for every ten shares of gibbs held by a stockholder. on that date, when the market price of oliver was $21 per share, there were 180,000 shares of gibbs outstanding. what net reduction in retained earnings would result from this property dividend?
a. $162,000 b. $378,000 c. $108,000 d. $216,000

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.