Stockholders equity accounts in a company have the following balances December 31, 2015:

Common stock, $10 par, 300,000 shares issued and outstanding: $3,000,000

Paid in capital in excess of par- common stock: 1,200,000

Retained earnings: 5,600,000

Shares of the company are currently selling at $37 (fair market value)

A stock dividend of 100% is declared and issued. After the divided, what is the balance of retained earnings?

A) 0

B) 2,600,000

C) 3,000,000

D) 5,600,000