The Stockholders' Equity Section of the Balance Sheet for Scuba

The stockholders' equity section of the balance sheet for Scuba Gear Corporation appeared as follows before its recent stock dividend: $\begin{array}{lr}\text { Common stock, } \$ 5 \text { par, } 100,000 \text { shares issued and outstanding } & \$ 500,000 \\\text { Additional paid-in capital } & 100,000 \\\text { Retained earnings } & 725,000 \\\quad \text { Total stockholders' equity } & \$ 1,325,000 \\\hline\end{array}$

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:
$\begin{array}{ccc}\text { Common Stock } & \text { Add'l. Paid-in Capital } & \text { Retained Earnings } \\\text { a. } \$ 580,000 & \$ 100,000 & \$ 645,000 \\\text { b. } \$ 550,000 & \$ 100,000 & \$ 675,000 \\\text { c. } \$ 550,000 & \$ 130,000 & \$ 645,000\\\text {d. There would be no change in the components of stockholders' equity.}\\\end{array}$