Zippy Company plans to issue a 10% stock dividend. Here are some details:

Current number of shares outstanding, 10,000

Par value $2.00

Current market price, $30

What will happen to retained earnings after the stock dividend is paid?

Group of answer choices

Retained earnings will decrease by $30,000.

Retained earnings will increase by $30,000.

Retained earnings will decrease by $300,000

Retained earnings will increase by $2,000.