MC Qu. 33 LO 18-05 As of December 31, 2013, Warner... As of December 31, 2013, Warner Corporation reported the following: Dividends payable 24,000 Treasury stock 640,000 Paid-in capital - share repurchase 24,000 Other paid-in capital accounts 4,400,000 Retained earnings 3,400,000 During 2014. half of the treasury stock was resold for $248,000; net income was $640,000; cash dividends declared were $1,540,000; and stock dividends declared were $540,000. The 2014 sale of half of the treasury stock would: Reduce income before tax by $72,000 Reduce retained earnings by $48,000 Reduce retained earnings by $72,000 L? O Increase total shareholders? equity by $320,000