As of December $31,2018,$ Wamer Corporation reported the following:

Divdends payable

Treasury stock

Paid$-$In capital$-$share repurchase

Other pald$-$in capital accounts

Retalned earnings

$$20,000$

$800,000$

$40,000$

$4,000,000$

$3,000,000$

During $2019,$ half of the treasury stock was resold for $$340,000$; net income was $$600,000$; cash dividends declared were $$1,500\mathrm{.}000$; and stock dividends declared were $$500\mathrm{.}000.$ The $2019$ sale of half of the treasury stock would:

Multuple Choice

$$ Reduce retained earnings by $$30\mathrm{.}000.$

Reduce retained earnings by $$20,000.$

Reduce retained earnings by $$60,000.$

Reduce retained earnings by $$40,000.$