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3. A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to A. decrease retained earnings, increase common stock, and increase paid-in capital B. increase retained earnings, decrease common stock, and decrease paid-in capital C. increase retained earnings, decrease common stock, and increase paid-in capital D. decrease retained earnings, increase common stock, and decrease paid-in capital 4. On September 1, the board of directors of Colorado Outfitters, Inc., declares a 10% stock dividend on its 20,000, $1 par, common shares. The market price of the common stock is $30 on this date. The effect of the issuance of stock dividend is A. decrease retained earnings by 30,000 B. decrease retained earnings by 60,000 C. increase common stock by 60,000 D. increase additional paid-in capital by 30,000