Question: Blaylock Industries declared and distributed a 2 5 % stock dividend on 1 7 , 0 0 0 shares of issued and outstanding $ 5

Blaylock Industries declared and distributed a

25 %

stock dividend on

17, 000

shares of issued and outstanding $

5

par value common stock. The market price per share was $

13

on the declaration date. Which of the following correctly describes the effect of accounting for the declaration and distribution of the stock dividend?

Group of answer choices

Retained earnings decreased $

55, 250 .

Additional paid

-

in capital increased $

29, 750 .

Retained earnings decreased $

51, 000 .

Common stock increased $

55, 250 .

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