valuc of the common stock was $20 per share. Stockholders' equity before the stock dividend was declared consisted of Ewing, Inc., declared a 10% stock dividend on its common stock when the market On January 1, 2017 36 Common stock, S10 par value, authorized 200,000 shares; $1,200,000 150,000 700,000 $2,050,000 issued and outstanding 120,000 shares Additional paid-in capital on common stock Retained earnings Total stockholders' equity What was the effect on Ewing's retained earnings as a result of the above transaction A. $200,000 decrease B. $120,000 decrease C. $240,000 decrease D. $400,000 decrease In 2016, Marly Corp. acquired 9,000 shares of its own $1 par value common stock at $18 per share. In 2017, Marly issued 4,000 of these shares at $25 per share. Marly uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Marly credit in 2017 to record the issuance of the 4,000 shares? 38. Additional Paid-in Capital Treasury Stock Retained Earnings $70,000 Common Stock A.$72,000 B. S72,000 $28,000 C. D. $96,000 $68,000 $4,000 $4,000 $28,000