on January 1, 2017 Alex Inc declared a 10% stock dividend on its common stock when the market value of the common stock was $20 per share. Stockholder's equity before the stock dividend was declared consisted of

Common stock, $10 par value authorized 200,000 share

Issued and outstanding 120,000 share $1,200,000

Additional paid in capital on common stock $150,000

Retained earnings $700,000

Total stockholders equity $2,050,000

what was the effect on Alex retained earnings as a result of the above transaction?