Baylock industries declared and distributed a 10% stock dividend on 25,000 shares of issued and outstanding $5 par value common stock. The market price per share was $9 on the declaration date. Which of the following correctly describes the effect of accounting for the declaration and distribution of the stock dividend? Multiple Choice Common stock increased $1,000 Retained earnings decreased $10,000, Retained earnings decreased $8,000. Additional paid-in capital increased $8,000.