A Corporation Had 40,000 Shares of $10 Par Value Common

A corporation had 40,000 shares of $10 par value common stock outstanding on August 1.Later that day,the board of directors declared a 9% stock dividend when the market value of each share was $72.The entry to record this dividend is:

A) $$\begin{array} { | c | r | r | } \hline \text { Common Stock Dividend Distributable } & 259,200 & \\\hline \text { Retained Earnings } & & 259,200 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Retained Earnings } & 259,200 & \\\hline \text { Common Stock Dividend Distributable } & & 259,200 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Retaired Earnings } & 259,200 & \\\hline \text { Common Stock Dividend Distributable } & & \mathbf { 3 6 , 0 0 0 } \\\hline \text { Paid-In Capital in Excess of Par Value } & & \\\text { Common Stock } & & 223,200 \\\hline\end{array}$$
D) $\begin{array}{|l|r|r|}\hline \text { Retained Earnings } & 36,000 & \\\hline \text { Common Stock Dividend Distributable } & & 36,000 \\\hline\end{array}$

E) No entry is made until the stock is issued