On October 1, 2018, Chief Corporation declared and issued a 13% stock dividend. Before this date, Chief had 80,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will:

Multiple Choice

• Decrease by $104,000.

• Not change.

• Increase by $104,000.

• Decrease by $106,000.