On January 1, 2021, Bramble Corp., declared a 10% stock dividend on its common stock when the fair value of the common stock was $30 per share. Stockholders' equity before the stock dividend was declared consisted of: Common stock, $10 par value, authorized 200,000 shares;
issued and outstanding 115000 shares $1150000
Additional paid-in capital on common stock 150000
Retained earnings 700,000
Total stockholders equity $2,050,000
What was the effect on Dodd's retained earnings as a result of the above transaction?
a. $180,000 decrease.
b. $360,000 decrease.
c. $600,000 decrease.
d. $300,000 decrease.