Brooks Co. booked the following journal entry to record a dividend received from Kline Inc.:

	Debit (Dr.)	Credit (Cr.)
Cash	$25,000
Dividend Income		$17,500
Investment in Kline		$7,500

If Brooks has a 5% ownership interest in Kline, then Kline:

a. paid dividends of $350,000

b. had retained earnings of $500,000

c. had retained earnings in excess of dividends paid by $50,000

d. paid dividends in excess of retained earnings by $150,000