Fast Carry-out Coffee began the year with $44,500 in retained earnings, and 61,000 shares of $0.25 par value common stock originally issued at $5 per share. The board of directors declared $12,000 of cash dividends on June 30. On July 1, Fast Carry-out declared a forward 2-for-1 stock split. The market price of the Fast Carry-Out stock was $6.24 just before the split.

Which of the following is one effect on the day the stock split occurs?

Select one:

A. Common stock increases by $15,250.

B. The market price of the stock declines to $3.12.

C. Total shareholders' equity increases by $15,250.

D. Retained earnings declines by $30,500.