Martin Co. is paying a $1.10 per share dividend today. There are 120,000 shares outstanding with a par value of $1 per share. As a result of this dividend, the:
capital in excess of par value will decrease by $132,000.
common stock account will decrease by $132,000.
retained earnings will decrease by $132,000.
common stock account will decrease by $120,000.
retained earnings will decrease by $120,000.