Trey Industries began the year with 400,000 shares of $1 par common stock and retained earnings of $2,000,000. Early in the year, Trey declared and distributed a 40% stock dividend when shares were trading at $6 per share. Near the end of the year, Trey declared a cash dividend of $0.50 per share, payable in the following year. Trey's end of the year retained earnings balance was:

a. $1,720,000

b. $1,640,000

c. $1,560,000

d. $760,000

e. None of the above