On December 31, 2017, the stockholders' equity section of Arndt, Inc., was as follows:

Common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares : $ 90,000

Additional paid-in capital : 116,000

Retained earnings : 184,000

Total stockholders' equity : $390.000

On March 31, 2018, Arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair value of the stock was $18 per share. For the three months ended March 31, 2018, Arndt sustained a net loss of $40,000. The balance of Arndt's retained earnings as of March 31, 2018, should be

a. $127,800.

b. $135,000.

C. $136,800.

d. $144,000.