Exhibit 17-1 the Zoeller Corporation's Stockholders' Equity Accounts Have the Following

Exhibit 17-1 The Zoeller Corporation's stockholders' equity accounts have the following balances as of December 31, 2010:
$\begin{array}{lc}\text { Common stock, } \$ 10 \text { par }(30,000 \text { sharesissued }\\\text { and outstanding) } & \$ 300,000 \\\text { Additional paid-in capital } & 2,000,000 \\\text { Retained earnings } & \$ 5,700,000 \\\text { Total stockholder's equity } & \$ 8,000,000\end{array}$

-Refer to Exhibit 17-1.On January 2, 2011, the board of directors of Zoeller declared a 30% stock dividend to be distributed on January 31, 2011.The market price per share of Zoeller's common stock was $30 on January 2 and $32 on January 31.As a result of this stock dividend, the retained earnings account should be decreased by

A) $ 90, 000
B) $270, 000
C) $288, 000
D) zero; only a memorandum entry is required