The Coolidge Brewing Company has stockholder's equity as follows:

Common Stock, $10 par $100,000

Additional Paid in Capital-Common Stock $230,000

Retained Earnings $316,450

Total Stockholder's Equity $646,450

The company is considering issuing an 8% stock dividend. The current market price

of the company's stock is $46/share.

If this dividend is declared and issued, which of the following statements is NOT true?

A. Contributed capital will be increased by $8,000.

B. Retained earnings will be reduced by $36,800.

C. Common stock will be increased by $8,000.

D. Additional Paid in Capital from Stock Dividends will be increased by $28,800.

E. 800 additional shares of common stock will be issued.