Which one of the following statements regarding dividends is correct?

A. A stock dividend of15% of the outstanding common shares results in a debit to retained earnings at the par value of the stock distributed.

B. At the declaration date of a30% stock dividend, the carrying value of retained earnings will be reduced by the fair market value of the stock distributed.

C. The declaration of a cash dividend will have no effect on book value per share.

D. The declaration and payment of a10% stock dividend will result in a reduction of retained earnings at the fair market value of the stock.

According to US GAAP