A company originally issued 15,000 shares of $8 par value common stock at $13 per share. The board of directors declares an 10% stock dividend when the market price of the stock is $25 a share. Which of the following is included in the entry to record the declaration of a stock dividend?

A.

Common Stock $8

Par Value is credited for $36,000.

B.

Stock Dividends is debited for $37,500.

C.

Common Stock is credited for $37,500.

D.

Stock Dividends is debited for $18,750.