M Majors Sporting Goods Company Is Authorized to Issue 1,000,000

M. Majors Sporting Goods Company is authorized to issue 1,000,000 shares of $30 par value common stock. By March 15, 2019, the company had issued 200,000 shares at $102 per share. On March 15, 2019, the company declared a 10% stock dividend when the market price was $120 per share.
What amount is transferred from retained earnings to paid-in capital as a result of the stock dividend?

A) $1,800,000
B) $ 600,000
C) $2,400,000
D) $7,200,000