On October 1, 2018, Chief Corporation Declared and Issued a 10

Multiple Choice

On October 1, 2018, Chief Corporation declared and issued a 10% stock dividend. Before this date, Chief had 80,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will:

A) Decrease by $80,000.
B) Not change.
C) Decrease by $40,000.
D) Increase by $80,000.