Boxer Company owned 21,000 shares of King Company that were purchased in 2019 for $440,000. 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 43,000 shares of Boxer stock outstanding. The market price of the King stock was $22 per share on the date of declaration and $36 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

Multiple Choice

• $0.

• $96,600.

• $155,000.

• $94,600.