Melvern's Corporation Has an Investment in 5,000 Shares of Wallace

Melvern's Corporation has an investment in 5,000 shares of Wallace Company ordinary shares with a cost of $218,000.These shares are used in a property dividend to shareholders of Melvern's.The property dividend is declared on May 25 and scheduled to be distributed on July 31 to shareholders of record on June 15.The market value per Wallace share is $63 on May 25, $66 on June 15, and $68 on July 31.The net effect of this property dividend on retained earnings is a reduction of

A) $340,000.
B) $330,000.
C) $315,000.
D) $218,000.