Boxer Company Owned 20,000 Shares of King Company That Were

Boxer Company owned 20,000 shares of King Company that were purchased in 2016 for $500,000. On May 1, 2018, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 50,000 shares of Boxer stock outstanding. The market value of the King stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

A) $0.
B) $150,000.
C) $160,000.
D) $300,000.