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A company had 50,000 common shares. During the period, a 10% stock dividend was declared and distributed. On the date of declaration the shares were

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A company had 50,000 common shares. During the period, a 10% stock dividend was declared and distributed. On the date of declaration the shares were trading at $ 25/share and on the date of distribution the shares were trading at $ 26/share. As a result of this stock dividend, retained earnings should increase (decrease) by Select one: a. $ (125,000). b. $ 125,000 c. $ 130,000. d. $ (130,000). Next page

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