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On June 30, the board of directors of Sandals, Inc. declares a 100% stock dividend on its 30,000, $1 par, common share. The market price of Sandals common stock is $35 on June 30. The effect of the issuance of stock dividend is

A. decrease retained earnings by 30,000

B. decrease retained earnings by 1,050,000

C. increase common stock by 1,050,000

D. increase additional paid-in capital by 30,000