On January 1, 2021, Dodd, Inc., declared a 10% stock dividend on its common stock when the fair value of the common stock was $30 per share. Stockholders' equity before the stock dividend was declared consisted of: Common stock, $10 par value, authorized 200,000 shares; $1,200,000 issued and outstanding 120,000 shares Additional paid-in capital on common stock Retained earnings Total stockholders' equity 150,000 700,000 $2,050,000 What was the effect on Dodd's retained earnings as a result of the above transaction? $180,000 decrease O $600,000 decrease $300,000 decrease $360,000 decrease