Team Shirts Issued a 10% Stock Dividend

Team Shirts issued a 10% stock dividend.The balance in retained earnings just before the dividend was $45,000.There were 15,000 shares outstanding on the day of the dividend.The $1 par value stock had a market price of $17.25 on the day of the dividend.Total shareholders' equity will increase (decrease) by ________.

A) $4,500
B) $1,500
C) $25,875
D) $0