Vittly Corporation Owned 900,000 Shares of Nixon Corporation Stock

Vittly Corporation owned 900,000 shares of Nixon Corporation stock. On December 31, 2008, when Vittly's account "Investment in Common Stock of Nixon Corporation" had a carrying value of $5 per share, Vittly distributed these shares to its stockholders as a dividend. Vittly originally paid $8 for each share. Nixon has 3,000,000 shares issued and outstanding, which are traded on a national stock exchange. The quoted market price fora Nixon share was $7 on the declaration date and $9 on the distribution date. What would be the reduction in Vittly's stockholders' equity as a result of the above transactions?

A) $3,600,000
B) $4,500,000
C) $7,200,000
D) $8,100,000