Austin Motor Works Declared and Distributed a 6% Stock Dividend

Austin Motor Works declared and distributed a 6% stock dividend in 2018 when the stock was selling for $20 per share. There were 4,000,000 shares outstanding at the time of the dividend declaration. The controller recorded the distribution at par value ($1 per share) resulting in a debit to Dividends and a credit to Common Stock for $240,000. Upon review in early 2019 when the 2018 books were still open, the CFO made which of the following correcting entries? (Abbreviations used: APIC = Additional Paid-In Capital)

A) He made no entry because the controller was correct.
B) $$\begin{array} { | l | r | r | } \hline \text { Dividends } & 4,560,000 & \\\hline \text { APIC in Excess of Par-Common } & & 4,560,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Dividends } & 4,560,000 & \\\hline \text { Common Stock } & & 4,560,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { APIC in Excess of Par-Common } & 4,560,000 & \\\hline \text { Common Stock } & & 4,560,000 \\\hline\end{array}$$