Crane Inc. has retained earnings of $810000 and total stockholders equity of $2040000. It has 307000 shares of $5 par value common stock outstanding, which is currently selling for $28 per share. If Crane declares a 9% stock dividend on its common stock:

A- retained earnings will decrease by $138150 and total stockholders equity will increase by $138150.

B- retained earnings will decrease by $773640 and total stockholders equity will increase by $773640.

C- net income will decrease by $138150.

D- retained earnings will decrease by $773640 and total paid-in capital will increase by $773640.