A company has 50,000 common shares outstanding with an par value of $ 10. When the market price was $ 30 per share, the company declared a dividend that will result in the distribution of 5,000 additional common shares to shareholders. The correct wage entry to record the declaration of this dividend is:

to. Retained earnings 150,000

Stock dividend to be distributed 50,000

Additional paid-in capital 100,000

b. Retained earnings 150,000

Stock dividend to be distributed 150,000

c. Retained earnings 150,000

Stock dividend to be distributed 50,000

Gain on stock dividend 100,000

d. Retained earnings 50,000

Stock dividend to be distributed 50,000