Gender Corporation declared and issued a 10% stock dividend on December 1. Prior to the declaration, Gender's retained earnings were $200,000, shares outstanding were 20,000, $5 par value, common stock with a current market value of $10 per share. Contributed capital will increase (decrease)as a result of recording this stock dividend by:

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A 10% stock dividend on 20,000 shares results in 2,000 additional shares (10% of 20,000). These shares are recorded at the market value of $10 per share, increasing contributed capital by $20,000 (2,000 shares x $10).

Gender Corporation Declared and Issued a 10% Stock Dividend on December