Question
Sheldon, Inc. declared a stock dividend of 50,000 shares on a date when the company's common stock was selling for $22 per share. Prior to
Sheldon, Inc. declared a stock dividend of 50,000 shares on a date when the company's common stock was selling for $22 per share. Prior to this date, Sheldon had 500,000 outstanding shares of $2 par value common stock. As a result of this stock dividend, Sheldon's common stock will _____, the additional paid - in capital will ____, and the retained earnings will ______
A. Increase $1,100,000; not change; decrease $1,100,000
B Increase $100,000; increase $1,000,000; decrease $1,100,000
C. Decrease $1,000,000; decrease $1,000,000; not change
D. Decrease $100,000; decrease $1,000,000; increase $1,100,000
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