Gibbs Corporation owned 20,000 shares of Oliver Corporations $5 par value common stock. These shares were purchased in 2007 for $180,000. On September 15, 2011, Gibbs declared a property dividend of one share of Oliver for every ten shares of Gibbs held by a stockholder. On that date, when the market price of Oliver was $14 per share, there were 180,000 shares of Gibbs outstanding. What net reduction in retained earnings would result from this property dividend? a. $90,000 b. $252,000 *c. $162,000 d. $72,000

Why is the net reduction not 72k? I thought that with the gain of 90k and reduction of 162k net would be 72k