On January 1, 2021, Sheffield Corp. had 128,000 shares of common stock with a par value of $5 outstanding. On June 1, the corporation purchased 10,600 shares to be held in treasury. On December 1, when the market price of the stock was $14, the corporation declared a 14% stock dividend to be issued to shareholders of record on December 16, 2021. What was the impact of the stock dividend 14% in the balance of the retained earnings account? $250,880 decrease OR No effect $89,600 decrease OR $230,104 decrease

On January 1, 2021, Sheffield Corp. had 128000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 10600 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $14, the corporation declared a 14% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 14% stock dividend on the balance of the retained earnings account? O $250880 decrease O No effect O $89600 decrease O $230104 decrease