Dora Company declared and distributed a 25% small stock dividend on 23,000 shares of issued and outstanding $5 par value common stock. The market price per share was $12 on the declaration date. Which of the following correctly describes the effect of accounting for the declaration and distribution of the stock dividend?

A) Retained earnings decreased $74,750.

B) Common stock increased $69,000.

C) Retained earnings decreased $69,000.

D) Additional paid-in capital increased $46,000.