Boxer Company owned 21,000 shares of King Company that were purchased in 2019 for $370,000. On May 1, 2021, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 48,000 shares of Boxer stock outstanding. The market price of the King stock was $22 per share on the date of declaration and $40 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

Multiple Choice

$107,100.

$192,200.

$0.

$105,600.