On January 1, 2021, Sheffield Corp. had 115000 shares of its $5 par value common stock outstanding. On June 1, the corpo

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On January 1, 2021, Sheffield
Corp. had 115000 shares of its $5 par value common
stock outstanding. On June 1, the corporation
acquired 11100 shares of stock to be held in the
treasury. On December 1, when the market price of the stock was
$13, the corporation declared a 15% stock dividend to be
issued to stockholders of record on December 16, 2021. What was the
impact of the 15% stock dividend on the balance of the
retained earnings account?
$86250 decrease
No effect
$202605 decrease
$224250 decrease