A company had outstanding 80,000 shares of $10 par value common stock. During the period a 10% stock dividend was declared and distributed. The market price was $15 a share. As a result of this stock dividend, retained earnings should increase (decrease) by an amount of:

Select one:

a. $(120,000).

b. $(80,000).

c. $120,000.

d. $80,000.