Pierson Corp owned 15,000 shares of Hunter Corporation. These shares were purchased in 2012 for $135,000. On Nov 15, 2016, Pierson declared a property dividend of one share of Hunter for every 10 shares of Pierson held by a stockholder. On that date, when the market price of Hunter was $28 per share, there were 135,000 shares of Pierson outstanding. What gain and net reduction in retained earnings would result from this property dividend?