As of December 31, 2018, Warner Corporation reported the following: Dividends payable $ 39,000 Treasury stock 790,000 Paid-in capital-share repurchase 39,000 Other paid-in capital accounts 5,900,000 Retained earnings 4,900,000 During 2019, half of the treasury stock was resold for $278,000; net income was $790,000; cash dividends declared were $1,690,000; and stock dividends declared were $690,000. The 2019 sale of half of the treasury stock would: Multiple Choice Reduce retained earnings by $117,000 Multiple Choice O Reduce retained earnings by $117,000 O Increase total shareholders' equity by $395,000 Reduce retained earnings by $78,000 Reduce income before tax by $117,000