As of December 31, 2021, Bennacer Corporation reported the following:

Cash dividends payable	$	38,000
Treasury stock		780,000
Paid-in capitalshare repurchase		38,000
Common stock and other paid-in capital accounts		5,800,000
Retained earnings		4,800,000

During 2022, half of the treasury stock was resold for $276,000; net income was $780,000; cash dividends declared were $1,680,000; and stock dividends declared were $680,000. The 2022 sale of half of the treasury stock would:

Multiple Choice

• Reduce retained earnings by $114,000

• Reduce income before tax by $114,000

• Reduce retained earnings by $76,000

• Increase total shareholders' equity by $390,000