Eastline Corporation Had 10,000 Shares of $10 Par Value Common

Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record this dividend is:

A) Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $36,000.
B) Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value, Common Stock $6,000.
C) Debit Common Stock Dividend Distributable $36,000; credit Retained Earnings $36,000.
D) Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000.
E) No entry is needed.Large stock dividends are recorded at par value (3,000 shares * $10)