Question: On October 1 , 2 0 2 1 , Chief Corporation declared and issued a 1 1 % stock dividend. Before this date, Chief had

On October 1,2021, Chief Corporation declared and issued a 11% stock dividend. Before this date, Chief had 77,000 shares of $5 par common stock outstanding. The market price of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will:
Multiple Choice:
A. Decrease by $86,700.
B. Increase by $84,700.
C. Not change.
D. Decrease by $84,700.

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