Regarding the Receipt of a Stock Dividend from an Investment

Multiple Choice

Regarding the receipt of a stock dividend from an investment that is held as a long-term investment in available-for-sale security, which of the following statements is CORRECT?

A) Dividend revenue, based on the current fair value of the stock, is recorded.
B) Because the number of shares of stock held has increased, the investor's cost per share also increases.
C) A new cost per share is determined and that amount is used for all future transactions affecting the investment.
D) The accounting treatment for a stock dividend is the same as the accounting treatment for a cash dividend.