Sheridan Company has 495000 shares of $10 par value common stock outstanding. During the year Sheridan declared a 16% stock dividend when the market price of the stock was $35 per share. Three months later Sheridan declared a $0.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

$2772000 $ 466700 $3059100 $ 490050