Sheridan Company has 560000 shares of $10 par value common stock outstanding. During the year, Sheridan declared a 14% stock dividend when the market price of the stock was $30 per share. Four months later Sheridan declared a $0.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

$517440.

$1176000.

$ 470400.

$2735040.