A small stock dividend:

a) Results in a transfer of retained earnings to common stock and additional paid-in capital.

b) Increases the number of shares outstanding and involves a pro rata reduction in the par value per share.

c) Is accounted for in exactly the same manner as a stock split.

d) Results in a transfer of retained earnings to additional paid-in capital and also increases the number of shares outstanding and involves a pro rata reduction in the par value per share.