Choice "A" is correct. A 6% stock dividend equals 6,000 shares with a total of 106,000 shares outstanding after the distribution of the dividend. Stock dividends and stock splits require restatement of the shares outstanding before the stock dividend or stock split. Thus, the stock dividend would be treated as if it had occurred at the beginning of the fiscal year.
Choice "d" is incorrect. This calculation ignores the fact that 6,000 shares were issued due to the stock dividend.
Choice "b" is incorrect. In this calculation, the stock dividend shares are weighted for the one month in which they were outstanding. However, stock dividends are treated as if they had occurred at the beginning of the fiscal year.
Choice "c" is incorrect. Stock dividends are treated as if they had occurred at the beginning of the fiscal year.