Doug Graves Cemetery had 50,000 shares of common stock issued and outstanding at January 1, 2018. During 2018, Graves took the following actions: June 1 Declared a 2-for-1 stock split, when the fair value of the stock was $25 per share. October 15 Declared a $0.40 per share cash dividend. In Graves's statement of shareholders' equity for 2018, what amount should Graves report as dividends?

a. $20,000

b.$40,000

c. $60,000

d. $90,000