The stockholders' equity section of Gunkel Corporation as of December 31, 2010, was as follows:

Common stock, par value $2; authorized 20,000 shares;

issued and outstanding 10,000 shares ......... $ 20,000Paid-in capital in excess of par ............. 30,000Retained earnings ..................................... 75,000

$125,000

On March 1, 2011, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2011, the fair market value of the stock was $6 per share. For the two months ended February 28, 2011, Gunkel sustained a net loss of $10,000. What amount should Gunkel report as retained earnings as of March 1, 2011?

A) $56,000.

B) $62,000.

C) $66,000.

D) $72,000.