Silkar Company has 350,000 shares of 10 par value ordinary shares outstanding. During the year, Silkar declared a 10% share dividend when the market price of the stock was 30 per share. Four months later Silkar declared a 1.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

a. 542,500. b. 525,000. c. 192,500. d. 927,500