Question - On January 1, 2018, Concord Corporation, declared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared consisted of:
Common stock, $10 par value, authorized 200,000 shares; issued and outstanding 122000 shares $1220000
Additional paid-in capital on common stock 149000
Retained earnings 713000
Total stockholders' equity $2082000
What was the effect on Concord's retained earnings as a result of the above transaction?
a. $195200 decrease
b. $390400 decrease
c. $634400 decrease
d. $317200 decrease