The shareholders' equity of Tirana Ltd. at July 31, 2020 is presented below:

	Common shares, no par value, authorized 400,000 shares,
	issued and outstanding 200,000 shares.......		$4,160,000
	Retained earnings.............................................		2,650,000
	Total shareholders equity.................................		$6,810,000

On August 1, 2020, the board of directors declared a 10% stock dividend, to be distributed on September 15. The market price of Tirana's common shares was $35 on August 1 and $38 on September 15.

What is the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

$400,000

$700,000

$760,000

$1,400,000