Question: Dora Company declared and distributed a 5% stock dividend on 11,000 shares of issued and outstanding $5 par value common stock. The market price per

 Dora Company declared and distributed a 5% stock dividend on 11,000

Dora Company declared and distributed a 5% stock dividend on 11,000 shares of issued and outstanding $5 par value common stock. The market price per share was $19 on the declaration date. Which of the following correctly describes the effect of accounting for the declaration and distribution of the stock dividend? Multiple Choice Common stock increased $10,450. Retained earnings decreased $9,900. Additional paid-in capital increased $7,150. Retained earnings decreased $10,450

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