As of December 31, 2013, Warner Corporation reported the following:

Dividends payable	22,000
Treasury stock	620,000
Paid-in capital - share repurchase	22,000
Other paid-in capital accounts	4,200,000
Retained earnings	3,200,000

During 2014, half of the treasury stock was resold for $244,000; net income was $620,000; cash dividends declared were $1,520,000; and stock dividends declared were $520,000.

The 2014 sale of half of the treasury stock would:

A)	Reduce retained earnings by $66,000
B)	Reduce income before tax by $66,000
C)	Increase total shareholders' equity by $310,000
D)	Reduce retained earnings by $44,000