44. On January 1, MNM Corporation had 240,000 common shares issued. On March 17, the company declared a 5% stock dividend to be distributed on March 30. The market value of the shares was $9 on March 17 and $12 on March 30.

Which of the following shows the proper effect of a stock split and a stock dividend?

(Col 1) Item---- (Col 2)Stock Split----(Col 3)Stock Dividend

A) (Col 1) Number of shares (Col 2) Increase (Col 3) Increase

B) (Col 1) Total shareholders' equity (Col 2) Decrease (Col 3) Increase

C) (Col 1) Total share capital (Col 2) Increase (Col 3) Increase

D) (Col 1) Total retained earnings (Col 2) Decrease (Col 3) Decrease

E) None of the presented choices.