On December 1, 2014, Arbor Company Had 20,000 Shares of $1

On December 1, 2014, Arbor Company had 20,000 shares of $1 par value common stock issued and outstanding. The next day they distributed a 50% stock dividend. The market value of the stock on that date was $9 per share. Please provide the journal entry for the transaction. Which of the following is the correct journal entry to record this transaction?

A) Debit Retained earnings $90,000 and credit Cash $90,000.
B) Debit Retained earnings $90,000, credit Common stock $10,000 and credit Paid-in capital $80,000.
C) Debit Common stock $10,000 and credit Retained earnings $10,000.
D) Debit Retained earnings $10,000 and credit Common stock $10,000.