How will a company's total current liabilities and total stockholders' equity be affected by the declaration of a stock dividend? (Assume the stock dividend is distributed at a later date.)

	Total	Total
	Current Liabilities	Stockholders' Equity
I.	increase	decrease
II.	increase	no effect
III.	no effect	decrease
IV.	no effect	no effect

Select one:

a. III

b. I

c. II

d. IV