Murton Industries Limited reported the following information on its recent statement of financial position.

Ordinary shares: 75 000 shares issued

What is the effect of a 10 per cent share dividend if the market price of the ordinary shares is $30 per share when the share dividend is declared?

		A share dividend has no impact on any of the shareholders' equity accounts
		Retained earnings decreases by $225 000
		Cash increases $187 500
		Total shareholders' equity increases $75 000