In 2017, its first year of operations, Bright Light issued 800,000 shares of its $1 par common stock for $13. In 2018, Bright Light completed the treasury stock transactions listed below.

February 1: Required 18,000 shares at $32.

April 1: Sold 6,000 shares at $38.

June 1: Sold 10,000 shares at $20.

Under the cost method of accounting for treasury stock, the June 1, 2018 sale of treasury stock would:

A. Reduce retained earnings by $84,000.

B. Reduce retained earnings by $36,000.

C. Reduce retained earnings by $120,000.

D. Reduce paid-in capital-share repurchase by $84,000.