A corporation had $50,000$ shares of $$20$ par value common stock outstanding. The board of directors declared and issued a $50\%$ stock dividend. The

market value of the stock was $$27$ per share. What is the journal entry to record this stock dividend?

Multiple Choice

Debit Retained Earnings and credit Common Stock for $$675,000.$

Debit Retained Earnings and credit Common Stock for $$500,000.$

Debit Retained Earnings and credit Cash for $$675,000.$

No entry is made to record the stock dividend.