As of December 31, 2017, Warner Corporation reported the following:

Dividends payable 20,000

Treasury stock 600,000

Paid-in-capital (share repurchase) 20,000

Other paid-in-capital accounts 4,000,000

Retained earnings 3,000,000

During 2018, half of the treasury stock was resold for $320,000; net income was $600,000; cash dividends declared were $1,500,000; and stock dividends declared were $500,000. The 2018 beginning balance in stockholders' equity is

a. $6,400,000.

b. $7,640,000.

c. $6,420,000.

d. $6,440,000.