On January 31, Year 2, Village Bank had 540,000 shares of $1 par value common stock outstanding. On that date, the company declared a 12% stock dividend when the market price of the stock was $41 per share. The immediate effect of this dividend upon Village Bank was Multiple Choice A reduction in retained earnings of $2,656,800. O A reduction in retained earnings of $64,800. O A liability to the stockholders of $64,800. A reduction in cash of $2,656.800