Lakeshore Industries This Company Reported the Following Information on Its

Lakeshore Industries This company reported the following information on its recent balance sheet:
Common stock,$10 par,100,000 shares authorized,75,000 shares issued and outstanding
-Refer to Lakeshore Industries.What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the stock dividend is declared?

A) A stock dividend has no impact on any of the stockholders' equity accounts.
B) Total stockholders' equity increases $75,000.
C) Cash increases $300,000.
D) $225,000 of retained earnings is transferred to the capital stock accounts.