Siena Manufacturing Corp. had 42,000 shares of $2 par value common stock outstanding prior to a 40% common stock dividend declaration and distribution. The market value of the common stock on the declaration date was $10. Which of the following statements incorrectly describes the effect of recording the common stock dividend?

• Retained earnings decreased $33,600
• Additional paid-in capital remained the same
• Total stockholders' equity remained the same
• Additional Paid-in capital increased $134,400

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