Masterson Company has 420,000 shares of $10 par value common stock outstanding. During the year Masterson declared a 15% stock dividend when the market price of the stock was $36 per share. Three months later Masterson declared a $.60 per share cash dividend. As a result of the dividends declared during the year,retained earnings decreased by

a. $415,800

b. $2,268,000

c. $396,000

d. $2,683,800

The answer has to be one of these 4 choices above