As of December 31, 2018, Warner Corporation reported the following: Dividends payable S 35,000 Treasury stock 750,000 Paid-in capital-share repurchase Other paid-in capital accounts Retained earnings 35,000 5,500,000 4,500,000 During 2019, half of the treasury stock was resold for $270,000; net income was $750,000; cash dividends declared were $1,650,000; and stock dividends declared were $650,000. The 2019 sale of half of the treasury stock would: Multiple Choice Increase total shareholders' equity by $375,000 Reduce income before tax by $105,000 During 2019, half of the treasury stock was resold for $270,000; net income was $750,000; cash dividends declared were $1,650,000; and stock dividends declared were $650,000. The 2019 sale of half of the treasury stock would: Multiple Choice Increase total shareholders' equity by $375,000 Reduce income before tax by $105,000 Reduce retained earnings by $105,000 Reduce retained earnings by $70,000