In 2007, Elm Company bought 10,000 shares of Oil Company at a cost of P200,000. On January 15, 2008, Elm declared a property dividend of the Oil stock to shareholders of record on February l, 2008, payable on February 15, 2008. During 2008, the Oil stock had the following market value: (V9-22)

January 15 P250,000;February 1 P 260,000;February 15 P240,000

_____The net effect of the foregoing transactions on retained earnings during the current year

should bereduction of:a. P200,000b. P240,000c. P 250,000d.P260,000