Luna Incorporated has the following Shareholder's Equity Section:

Preferred Stock, 8%,, $100 PV $100,000

Common Stock, $5 PV 5,000

PIC- Excess Par Value- P/S 25,000

PIC- Excess Par Value- C/S 65,000

Retained Earnings 180,000

Total $375,000

If Luna declares a 10% common stock dividend when the market price is $7 per share, what will be the balance in Retained Earnings after the declaration?

a. $180,000

b. $176,500

c. $179,300

d. $173,000

e. none of the above