Hernandez Company Has 560,000 Shares of $10 Par Value Common

Multiple Choice

Hernandez Company has 560,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 10% stock dividend when the market price of the stock was $30 per share. Four months later Hernandez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

A) $1,988,000.
B) $ 840,000.
C) $ 308,000.
D) $ 280,000.