A corporation declared and issued a 15% stock dividend on October 1. The following information was available immediately prior to the dividend:

Retained earnings	$650,000
Shares issued and outstanding	50,000
Market value per share	$25
Par value per share	$5

The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is:

a.

$37,500.

b.

$(187,500).

c.

$0.

d.

$(37,500).

e.

$187,500.