The following information is for the next two questions: As of December 31, 2021, Warner Corporation reported the following:

Dividends Payable 20,000

Treasury Stock 60,000

Paid in capital- Share Repurchase 20,000

Other Paid in Capital Accounts 4,000,000

Retained Earnings 3,000,000

During 2022, half of the treasury stock was resold for $320,000; net income was $600,000; cash dividends declared were $1,500,000; and stock dividends declared were $500,000. 1. The 2022 beginning balance in stockholders equity is:

A) $7,640.

B) $6,440.

C) $6,420.

D) $6,400.