On December 1, year 1, Nilo Corp. declared a property
dividend of marketable securities to be distributed on December
31, year 1, to stockholders of record on December 15, year 1.
On December 1, year 1, the trading securities had a carrying
amount of $60,000 and a fair value of $78,000. What is the effect
of this property dividend on Nilo’s year 1 retained earnings, after
all nominal accounts are closed?