On May 1, Joseph Carpenter opened a printing business, Carpenter Printing Incorporated.  Joseph invested $40,000 of his savings, plus $74,000 in printing equipment, in exchange for capital stock of the business.  The monthly depreciation on the printing equipment is estimated to be $1,200.

On May 2, Carpenter Printing rented office space, issuing a check for $16,500, paying the first three months' rent in advance.

On May 2, Carpenter Printing purchased a 12 month umbrella insurance policy, issuing a check for $4,800.

On May 7, Carpenter Printing purchased supplies on account for $10,000, $1,400 of which will be unused at the end of May.

On May 9, Carpenter Printing printed $13,000 in magazines for the Pierre Company.  The magazines were delivered on May 9, along with an invoice for $7,500 due June 9.  The remaining $5,500 will be invoiced in June and will be due on July 9.

On May 20, Cecil Advertising Agency paid Carpenter Printing $12,000 ($7,000 to print advertisements in May and $5,000 to print advertisements in June).  On May 30, $7,000 of advertisements were printed and delivered.

On May 30, dividends of $1,000 were paid.

Assuming no further transactions, the Increase (Decrease) in Retained Earnings on the Statement of Retained Earnings of Carpenter Printing Incorporated For the Month Ended May 31 = ?

a.3,300

b.(2,000)

c.5,000

d.4,300