The stockholders' equity section of the balance sheet for Potawatomi Corporation appeared as follows before its recent stock dividend:

Common stock, $20 par, 10,000 shares issued and outstanding	$ 200,000
Additional paid-in capital - common	240,000
Retained earnings	300,000
Total stockholders' equity	$740,000

Potawatomi declared a 10% stock dividend when the market price per share was $40. After the stock dividend was distributed, the components of the stockholders' equity section were:

A.

Common Stock	Additional Paid-in Capital	Retained Earnings
$200,000	$260,000	$340,000

B.

Common Stock	Additional Paid-in Capital	Retained Earnings
$200,000	$260,000	$260,000

C.

Common Stock	Additional Paid-in Capital	Retained Earnings
$220,000	$260,000	$260,000

D.

There would be no change in the components of stockholders' equity.