How Will a Company's Total Current Liabilities and Total Stockholders

How will a company's total current liabilities and total stockholders' equity be affected by the declaration of a stock dividend? (Assume the stock dividend is distributed at a later date.) $\begin{array}{lll}&\text { Total } & \text { Total } \\&\text { Current Liabilities } & \text { Stockholders' Equity } \\ \text { I. } & \text { increase } & \text { decrease } \\\text { II. } & \text { increase } & \text { no effect }\\\text { III. } &\text { no effect }& \text { decrease } \\\text { IV. } &\text { no effect }&\text { no effect }\end{array}$

A) I
B) II
C) III
D) IV

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