On January 2, 2011, the board of directors of Gimli Mining Corporation declared a cash dividend of $1,200,000 to stockholders of record on January 18, 2011, and payable on February 10, 2011. The dividend is permissible by law in Gimli's state of incorporation. Selected data from Gimli's December 31, 2010, balance sheet follow:

Accumulated depletion ................................. $ 200,000
Capital stock ......................................... 1,100,000
Additional paid-in capital ............................ 800,000
Retained earnings ..................................... 500,000

Assuming the total dividend includes the largest possible distribution of earnings, the $1,200,000 dividend includes a liquidating dividend of:

a. $800,000.
b. $700,000.
c. $600,000.
d. $200,000