When a subsidiary issues a stock dividend, an amount equal to the fair value of the shares should be removed from retained earnings and transferred to paid-in-capital in excess of par, if the distribution:

Select one:

a.

is more than 50% of the previously outstanding shares.

b.

does not exceed 20% to 25% of the previously outstanding shares.

c.

exceeds 20% of the previously outstanding shares.

d.

is less than 20% of the previously outstanding shares.