Orlando Company has a beginning balance in retained

earnings of $100,000 . During the year, it had a net loss

of $20,000, paid cash dividends of $3,000, and issued

a small stock dividend that had a market value of

$7,000 and a par value of $1,000. The ending balance

in retained earnings is:

(a) $120,000.

(b) $80,000.

(c) $79,000.

(d) $70,000.