On March 31, 2018, Arndt declared a 15\% stock dividend, and accordingly 1,350 additional shares were issued, when the fair value of the stock was $20 per share. For the three months ended March 31, 2018, Arndt recorded a net income of $40,000. The balance of Arndt's retained earnings as of March 31, 2018, should be a. $194,000. b. $154,800. c. $127,000. d. $207,000