Minnick Corp

Minnick Corp. has 900,000 no par common shares authorized, of which 400,000 shares are outstanding. The average carrying value of the shares is $ 6 per share. When the market value was $ 10 per share, Miinick declared a 10% stock dividend. What entry, if any, should Minnick make to record this dividend declaration?

$\begin{array}{ll}\ a) \text{No entry } & \quad\quad\quad \quad\quad\quad\quad\quad\quad \text{\ \quad \quad\quad\quad \quad } \\ b) \text{ Retained Earnings........................................................................} & \quad \quad \quad \text{\ 200,000 \quad \quad \quad } \\~~~~~~~~~~~~~~~~\text{ Common Stock Dividend Distr ibutable........................................} & \quad\quad \quad \quad\quad \quad \quad \quad \quad \text{\ 200,000 \quad \quad \quad } \\c)\text{ Retained Earnings .......................................................................} & \quad \quad \quad \text{\ 400,000 \quad \quad \quad } \\~~~~~~~~~~~~~~~~\text{ Common Stock Dividend Distributable........................................} & \quad\quad \quad \quad\quad \quad \quad \quad \quad \text{\ 400,000 \quad \quad \quad } \\ d) \text{ Stock Dividend Payable......................................} & \quad \quad \quad \text{\ 400,000 \quad \quad \quad } \\~~~~~~~~~~~~~~~~\text{ Common Stock Dividend Distributable...............................} & \quad\quad \quad \quad\quad \quad \quad \quad \quad \text{\ 400,000 \quad \quad \quad } \\\ \end{array}$