1.The Mulieri Company was authorized to issue 100,000 shares of common stock with a $10 par value. The company issued 30,000 shares for cash of $15 per share. Later, when the shares were selling for $20 per share on a stock exchange, the company issued another 9,000 shares as a stock dividend. Which of the following statements is true about the recording of the stock dividend?

The total amount of stockholders' equity is not affected but retained earnings is reduced by $90,000

Stockholders' equity is reduced by $180,000 and retained earnings is also reduced by $180,000

Stockholders' equity is reduced by $90,000 and retained earnings is reduced by $135,000

The total amount of stockholders' equity is not effected but retained earnings is reduced by $180,000