If a Firm Has Retained Earnings of $4 Million, a Common

If a firm has retained earnings of $4 million, a common shares account of $7 million, and additional paid-in-capital of $3 million, how much would be transferred in (or out) of these accounts in response to a 20 percent stock dividend, respectively?

A) − 20 percent, 0 percent, + 20 percent
B) − 20 percent, + 20 percent, 0 percent
C) − 50 percent, + 20 percent, + 20 percent
D) − 50 percent, + 25 percent, + 25 percent