Select from the option list provided the effect (increase, decrease, or no effect) each transaction below will have on Mart's common stock account. Each choice may be used once, more than once, or not at all. The state in which Mart is incorporated requires capitalization of retained earnings in the amount of the par value of the shares issued when a stock split in the form of a dividend occurs. Transaction Answer I 1. Mart declares and distributes a 10% stock dividend. - 2. Mart retires 5,000 of its outstanding shares of common stock. E 3. Mart acquires its own stock to hold as treasury stock using the cost method. 4. Mart issues a 3-for-1 stock split. 5. Mart issues 1,000 previously unissued common shares at $25 per share. 6. Mart declares and distributes a 30% stock dividend. 7. Mart distributes a dividend of $1,200,000. Only $900,000 is in retained earnings to distribute as a cash dividend. : R