Darby Corporation has outstanding 10,000 shares of 10 par value ordinary shares and retained earnings of 500,000. If Darby declares a 10 percent share dividend when the fair value of the shares is 85 per share, the entry at the declaration date will be:

a. debit to Retained Earnings for 10,000; credit to Ordinary Share Dividend Distributable for 10,000.

b. debit to cash for 85,000; credit to Share PremiumOrdinary for 75,000; credit to Share Capital-Ordinary for 10,000.

c. No entry is required for a share dividend.

d. debit to cash for 85,000; credit to Share PremiumOrdinary for 10,000; credit to Share Capital-Ordinary for 75,000.