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Fatty Squirrel Inc. has 10,000 shares of $10 par value, common stock outstanding. The current market price per share is $100. Fatty Squirrel issues a

Fatty Squirrel Inc. has 10,000 shares of $10 par value, common stock outstanding. The current market price per share is $100. Fatty Squirrel issues a 10% stock dividend. The effect of this stock dividend is to:

record a $100,000 dividend payable liability when the stock dividend is declared

reduce total stockholders equity when the stock dividend is distributed

increase total stockholders equity by $10,000

has no effect on total stockholders equity

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