Atkins Company had 21,100 shares of $5 par value common stock outstanding prior to declaring a 10% common stock dividend. The market value of the common stock on the declaration date was $11. Which of the following statements correctly describes the effect of the common stock dividend?

a. Retained earnings decreased $23,210.

b. Total stockholders' equity decreased $10,550.

c. Total stockholders' equity decreased $23,210.

d. Retained earnings decreased $10,550.