A corporation had 30,000 shares of $13 par value common stock outstanding. The board of directors declared and issued a 45% stock dividend. The market value of the stock was $25 per share. What is the journal entry to record this stock dividend?

Multiple Choice

• Debit Retained Earnings and credit Common Stock for $337,500.

• Debit Retained Earnings for $513,000, credit Common Stock for $175,500, and credit Additional Paid-in Capital for $337,500.

• Debit Retained Earnings and credit Cash for $175,500.

• Debit Retained Earnings and credit Common Stock for $175,500.

• Debit Retained Earnings for $337,500, credit Common Stock for $175,500, and credit Additional Paid-in Capital for $162,000.