Elves Ltd. owns 150,000 shares of Rogue Ltd. common shares, which are being accounting for by the equity method. On December 15, 2020, when Elves "Investment in Common Shares of Rogue Ltd." account has a carrying value of $7.50 per share, Elves declares all these shares to its shareholders as a property dividend, to be distributed on December 31, 2020. Elves had originally paid $12 for each share. Rogue has 1,500,000 shares issued and outstanding, for which the quoted market price was $10.50 per share on the declaration date and $13.50 per share on the distribution date. Ignoring income taxes, what would be the reduction in Elves' shareholders' equity as a result of the above transactions?

a) 1,575,000

b) 1,050,000

c) 1,125,000

d) 1,200,000