Overton Company plans to issue a large stock dividend. In accounting for this transaction, what effects occur to the contributed capital section of stockholders' equity?

Select one:

A$.$ Retained earnings increases by the number of dividend shares x par value per share, and additional paid$-$in capital increases for the balance

B$.$ Common stock increases by the number of dividend shares x par value per share, and retained earnings increases for the balance

C$.$ Common stock increases by the total market value of the dividend

D$.$ Common stock increases by the number of dividend shares x par value per share, and retained earnings decreases for the same amount