As of December 31, 2016, Warner Corporation reported the following Dividends payable Treasury stock Paid-in capital share repurchase Other paid-in capital accounts Retained earnings $22,000 620,000 22,000 4,200,000 $3,200,000 During 2017, half of the treasury stock was resold for $244,000, net income was $620,000, cash dividends declared were $1,520,000, and stock dividends declared were $520,000 The 2017 sale of half of the treasury stock would O Reduce income before tax by $66.000 O Reduce retained earnings by $66,000 O Reduce retained earnings by $44,000 O Increase total shareholders’ equity by $310,000