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

Common stock, $5 par, 100,000 shares issued and outstanding	$500,000
Additional paid-in capital	100,000
Retained earnings	725,000
Total stockholders' equity	$1,325,000

Scuba Gear declared a 10% stock dividend when the market price per share was $8. After the stock dividend was distributed, the components of the stockholders' equity section were:

Common Stock	Add'l. Paid-in Capital	Retained Earnings
a. $580,000	$100,000	$645,000
b. $550,000	$100,000	$675,000
c. $550,000	$130,000	$645,000

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