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On October 1, 2017, Kraken Corporation declared and issued a 10% stock dividend. Prior to this date, Kraken had 80,000 shares of $5 par common
On October 1, 2017, Kraken Corporation declared and issued a 10% stock dividend. Prior to this date, Kraken had 80,000 shares of $5 par common stock outstanding. The market price of Kraken Corporation's common stock on the date of declaration was $10 per share. As a result of this dividend, Kraken's retained earnings will:
- A)Increase by $80,000.
- B)Not change.
- C)Decrease by $40,000.
- D)Decrease by $80,000.
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