An Ottawa fiRm Has 200,000 Shares of Stock Outstanding, with a Market

An Ottawa firm has 200,000 shares of stock outstanding, with a market value per share of $15. In addition, on the balance sheet there is common stock of $1,950,000 and retained earnings of
$1,450,000. Suppose the firm declares a 20% stock dividend. What happens to the common stock
Account on the balance sheet? Assume there are no taxes or transaction costs.

A) The account remains unchanged.
B) The account increases by $200,000.
C) The account increases by $400,000.
D) The account increases by $600,000.
E) The account decreases by $500,000.