On July 1, 2005, Vail Corp. issued rights to stockholders to subscribe to additional shares of its common stock. One right was issued for each share owned. A stockholder could purchase one additional share for 10 rights plus $15 cash. The rights expired on September 30, 2005. On July 1, 2005, the market price of a share with the right attached was $40, while the market price of one right alone was $2.

Vail's stockholders' equity on June 30, 2005 comprised the following:

Common stock, $25 par value,   4,000

Shares issued and outstanding  $100,000

Additional paid-in capital              60,000

Retained earnings           80,000

By what amount should Vail's retained earnings decrease as a result of issuance of the stock rights on July 1, 2005?