Mingenback Company has 560,000 shares of $10 par value ordinary shares outstanding. During the year Mingenback declared a 5% share dividend when the market price of the shares was $48 per share. Two months later Mingenback declared a $.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by:

$1,344,000.

$336,000.

$352,800.

$632,800.