On October 1, 2021, Chief Corporation declared and issued a 8% stock dividend. Before this date, Chief had 75,000 shares of $5 par common stock outstanding. The market price 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 $62,000.

• Increase by $60,000.

• Decrease by $60,000.

• Not change.