Mildred Corporation Owned 2,000 Shares of Lester Corporation $\begin{array}{cc}& & \text {Net Reduction in} \\&\text { Gain }&\text { Retained Earnings }\\\end{array}$

Mildred Corporation owned 2,000 shares of Lester Corporation. These shares were purchased in 2004 for $18,000. On October 15, 2008, Mildred declared a property dividend of one share of Lester for every ten shares of Mildred held by a stockholder. On that date, when the market price of Lester was $14 per share, there were 18,000 shares of Mildred outstanding. What gain and net reduction in retained earnings would result from this property dividend?
$\begin{array}{cc}& & \text {Net Reduction in} \\&\text { Gain }&\text { Retained Earnings }\\\end{array}$

A) $\begin{array}{cc}&\$0 &&&& \$ 16,200 \\\end{array}$
B) $\begin{array}{cc}& \$0 &&&& \$ 25,200 \\\end{array}$
C) $\begin{array}{cc} &\$ 9,000 &&\$ 7,200 \\\end{array}$
D) $\begin{array}{cc}&\$ 9,000&&\$ 16,200 \\\end{array}$