Consider the following information related to Honor Inc.:

Common stock at the beginning of the year$8,000Common stock issued during the year$2,000Net income for the year$5,200Dividends paid during the year$3,800

Which of the following is the accurate way of reporting the common stock and retained earnings on the statement of stockholders' equity at the end of the year?

a.$11,400 is shown as common stock, and $0 is shown as retained earnings.

b.$8,000 is shown as common stock, and $5,200 is shown as retained earnings.

c.$10,000 is shown as common stock, and $5,200 is shown as retained earnings.

d.$10,000 is shown as common stock, and $1,400 is shown as retained earnings.