Linden Tree Company Is Authorized to Issue 500,000 Shares of $20

Linden Tree Company is authorized to issue 500,000 shares of $20 par value common stock. By March 15, 2019, the company had issued 120,000 shares at $32 per share. On March 15, 2019, the company declared a 5% stock dividend when the market price was $30 per share.
What amount is transferred from retained earnings to paid-in capital as a result of the stock dividend?

A) $120,000
B) $300,000
C) $180,000
D) $450,000