Kimberly Conrad owns 150 shares of Dalor Organization. On January 13, 2X13, Dalor Organization declared and issued a 3% stock dividend. The market price per share of Dalor Organization's stock is $35, and the par value is $1.00 per share. What is the journal entry to be made by Dalor Organization with respect to the stock dividend distribution to Kimberly Conrad?

Select one:

A. Retained Earnings 157.50 Common Stock 4.50 Additional Paid-in Capital 153.00

B. Retained Earnings 4.50 Common Stock 4.50

C. Retained Earnings 157.50 Common Stock 157.50

D. Retained Earnings 157.50 Common Stock 4.50 Additional Paid-in Capital 135.00 Cash 27.00

E. Retained Earnings 9.00 Additional Paid-in Capital 148.50 Common Stock 4.50 Cash 153.00