Question: O n October 1 , 2 0 2 4 , Liu Corporation declared and issued a 1 5 % stock dividend. Before this date, Liu

On October 1,2024, Liu Corporation declared and issued a15% stock dividend. Before this date, Liu had 85,000 shares of $5 par common stock
outstanding. The market price of Liu Corporation on the date of declaration was $10 per share. As a result of this dividend, Liu's retained earnings will:
Multiple Choice
decrease by $127,500.
not change.
increase by $127,500.
decrease by $129,000.
O n October 1 , 2 0 2 4 , Liu Corporation

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