Crane Company has 550000 shares of $10 par value common stock outstanding. During the year, Crane declared a 14% stock dividend when the market price of the stock was $28 per share. Four months later Crane declared a $0.40 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

$338800.

$ 308000.

$2406800.

$1078000.