TB MC Qu$.11-82($Algo$)$ Blaylock Industries declared and distributed...

Blaylock Industries declared and distributed a $25\%$ stock dividend on $28,000$ shares of issued and outstanding $$5$ par value common stock. The market price per share was $$17$ 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 $$119,000.$

Additional paid$-$in capital increased $$91,000.$

Retained earnings decreased $$126,000.$

Retained earnings decreased $$119,000.$