A corporation had 14,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 5,320 shares. At the time of the stock dividend, the market value per share was $20. The entry to record this dividend is:
a.) Debit Retained Earnings $53,200; credit Common Stock Dividend Distributable $53,200
b.) No entry is needed
c.) Debit Retained Earnings $106,400; credit Common STock Dividend Distributable $53,200; credit Paid in Capital in Excess of Par Value, Common Stock $53,200
d.) Debit Common Stock Dividend Distributed $106,400; credit Retained Earnings $106,400
e.) Debit Retained Earnings $106,400; credit Commong Stock Dividend Distributable $106,400.Must explain the answer in order to receive full credit.