dividend? A. Retained earnings will decrease by $1.6 million and common stock will increase by $1.6 million. B. Retained earnings will decrease by $1.6 million and additional paid-in capital will increase by $1.6 million. C. Retained earnings will decrease by $32 million and common stock will increase by $32 million. D. Retained earnings will decrease by $32 million, common stock will increase by $1.6 million and additional paid-in capital will increase by $30.4 million. QUESTION 3 A. There will be a transfer of $2.5 million from retained earnings to the common stock account. B. For every one share of stock owned, a shareholder will receive four shares and will now own 5 shares of stock. C. The shares issued and outstanding will all quadruple while the par value will be reduced to $0.25 per share. D. The company will be unable to declare a 4-for-1 split because it does not have enough authorized shares to issue