Jones Inc. has common stock of $3,000,000, additional paid-in capital of $200,000, and a retained earnings deficit of $1,440,000. As part of a quasi-reorganization, Jones writes down its assets by $800,000. To eliminate its deficit, Jones must reduce its common stock account by

$1,240,000.

$1,440,000.

$2,040,000.

$2,240,000.