A Corporation Declared and Issued a 15% Stock Dividend on October

Multiple Choice

A corporation declared and issued a 15% stock dividend on October 1. The following information was available immediately prior to the dividend: $\begin{array} { l } \text {Retained earnings }&\$750,000 \\ \text { Shares issued and outstanding}&60,000 \\ \text {Market value per share }&\$15 \\ \text { Par value per share}& \$5\\\end{array}$
The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is:

A) $(135,000) .
B) $135,000.
C) $(45,000) .
D) $45,000.
E) $0.