On May $1,2024,$ Baby Corp. declared and issued a $60\%$ common stock dividend. Prior to this dividend, Baby had $100,000$ shares of $$1$ par value common stock issued and outstanding. The fair value of Baby's common stock was $$20$ per share on May $1,2024.$ As a result of this stock dividend, Baby's Retained Earnings

Question $1$Answer

a$.$

did not change.

b$.$

decreased by $$60,000.$

c$.$

decreased by $$100,000$

d$.$

decreased by $$1,200,000.$

e$.$

the correct answer is not an option.