Adam Corporation Owns 1,000 Shares of Common Stock of Rosen,Inc

Adam Corporation owns 1,000 shares of common stock of Rosen,Inc. ,a large publicly traded company listed on a major stock exchange.If Rosen issues a 20 percent stock dividend when the par value is $10 per share and the market value is $70 per share,how much and what type of income should Adam report?

A) $0
B) $2,000 ordinary income
C) $14,000 ordinary income
D) $2,000 ordinary income and $12,000 extraordinary income