Kuchman Kookware issued 40,000 shares of its $ 8.00 par value common stock for $ 9 on January 1 , Year 1. Kuchman repurchased 1,000 shares at $ 8 per share on April 1 , Year 2 , resold 500 shares at $ 9 per share on July 1 , Year 2 , and , on October 1 , Year 2 , resold the final 500 shares at $ 5 per share . Assuming Kuchman uses the par value method of accounting its treasury stock , retained earnings at December 31 , Year 2 would be reduced by :

A: 1500

B: 500

C: 1,000

D. 0