What is the effect of the declaration and subsequent issuance of a 5% stock dividend on each of the following?

What is the effect of the declaration and subsequent issuance of a 5% stock dividend on each of the following?



Retained earnings Paid in Capital


a. No effect no effect
b. No effect Increase
c. Increase decrease
d. decrease increase



A) a
B) b
C) c
D) d








Answer: D


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