On January 31, Year 2, Village Bank had 500,000 shares of $2 par value common stock outstanding. On that date, the company declared a 14% stock dividend when the market price of the stock was $37 per share. The immediate effect of this dividend upon Village Bank was: Multiple Choice A reduction in retained earnings of $2,590,000. A reduction in cash of $2,590,000. A reduction in retained earnings of $140,000. A liability to the stockholders of $140,000.