On January 1, 2020, Bratislava Corporation Had 110,000 No Par

Multiple Choice

On January 1, 2020, Bratislava Corporation had 110,000 no par value common shares outstanding, which had been issued at $ 5 each. On June 1, the corporation acquired 10,000 shares to be held in the treasury. On December 1, when the market price of the shares was $ 4, the corporation declared a 10% stock dividend to be issued to shareholders of record on December 16. What was the impact of the 10% stock dividend on the retained earnings account?

A) $ 50,000 decrease
B) $ 44,000 decrease
C) $ 40,000 decrease
D) no effect