Hernandez company has $ 60,000 common shares outstanding with a par value of $ 10. On January 2, 2019, Hernandez declared and distributed a 10% stock dividend when the market price of the stock was $ 30. Four months later Hernandez declared a cash dividend of $ 0.50 per share. As a result of the declaration of both dividends, retained earnings decreased by 

a. 1,706,000

b. 308,000

c.1,988,000

d. 868,000