14-Norris Company has the following capital structure: Common stock, $1 par, 100,000 shares issued and outstanding

On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. Of the 5,000 stock dividend shares, 4,800 were whole shares and 200 were fractional shares. The companys policy is to pay cash to shareholders for fractional shares. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020.

Upon declaration of the stock dividend, Norris Company would record

--Group of answer choices:

A) A debit to Retained Earnings for $67,200

B) A credit to Dividends Payable for $3,000

D) A credit to Common Stock for $4,800

C) A credit to Paid-in Capital in Excess of ParCommon Stock for $70,000