All of the following statements regarding the accounting for the stockholders' equity of a corporation are true except
a. A prior period adjustment should be reported as an adjustment to be the retained earnings balance at the beginning of the period in which the adjustment was made.
b. A restriction/appropriation of retained earnings established cash assets that are set aside for a specific purpose.
c. A 10% stock dividend will increase the number of shares outstanding, but the book value per share will decrease.
d. The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.
e. If the dividend amount of preferred stock, $50 par value, is quoted as 8% then the dividends per share would be $4.