Arnold, Inc. declares and distributes a 10% common stock dividend when it has 70,000 shares of $100 par value common stock outstanding. If the market value of the common stock is $20, the journal entry to record the stock dividend would include a:
A) debit to Retained Earnings $140,000.
B) debit to Retained Earnings $700,000.
C) credit to Paid-in Capital in Excess of Par-Common $140,000.
D) credit to Paid-in Capital in Excess of Par-Common $700,000.
Correct Answer:
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