A company declares a 40% large stock dividend when there were 4 million common shares outstanding with a $1 par value. The current market price is $20 per common share. Which of the following will be the effect of the stock dividend?

	A.	Retained earnings will decrease by $1.6 million and common stock will increase by $1.6 million.
	B.	Retained earnings will decrease by $1.6 million and additional paid-in capital will increase by $1.6 million.
	C.	Retained earnings will decrease by $32 million and common stock will increase by $32 million.
	D.	Retained earnings will decrease by $32 million, common stock will increase by $1.6 million and additional paid-in capital will increase by $30.4 million.