On January 1, Victory Corporation's Common Stock Account Had a Balance

On January 1, Victory Corporation's Common Stock account had a balance of $100,000, representing 20,000 shares of $5 par value issued at $40 per share. On May 15, 5,000 shares were issued for $120,000 cash. On August 31, a 10% stock dividend was declared and distributed. What is the balance in Common Stock appearing on the statement of stockholders' equity on December 31?

A) $240,000
B) $137,500
C) $237,500
D) $257,500