On December 1,2017,Arthur,Inc.had 40,000 shares of $10 par value common stock issued and outstanding.The next day it declared a 50% stock dividend.The market value of the stock on that date was $9 per share.Which of the following is the correct journal entry to record this transaction?
A) debit Stock Dividends $360,000 and credit Cash $360,000
B) debit Stock Dividends $360,000,credit Common Stock $400,000,and credit Paid-In Capital in Excess of Par -$40,000
C) debit Common Stock $200,000 and credit Cash $200,000
D) debit Stock Dividends $200,000 and credit Common Stock Dividend Distributable $200,000
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