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Sarina Company plans to issue a large stock dividend. In accounting for this transaction, what effects occur to the contributed capital section of stockholders' equity?
Sarina 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
Common stock increases by the number of dividend shares times par value per share, and retained earnings decreases for the same amount
B
Retained earnings increases by the number of dividend shares times par value per share, and additional paidin capital increases for the balance
C
Common stock increases by the number of dividend shares times par value per share, and retained earnings increases for the balance
D
Common stock increases by the total market value of the dividend
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