Reinhardt Company reported revenues of $110,000 and expenses of

$75,000 on its 2009 income statement. In addition, Reinhardt paid $4,000 of dividends during the 2009. On December 31, 2009, Reinhardt prepared closing entries. The net effect of the closing entries on retained earnings was a(n):

a. Decrease of $ 4,000

b. Decrease of $79,000

c. Increase of $35,000

d. Increase of $31,000