Ng Company had 35 million shares of $2 par common stock outstanding on January 1, 2024. In October 2024, Ng Company's Board of Directors declared and distributed a 2% common stock dividend when the market value of its common stock was $56 per share. In recording this transaction, Ng would:

Multiple Choice

debit retained earnings for $39.20 million.

credit paid-in capitalexcess of par for $39.20 million.

credit common stock for $39.20 million.

None of these answer choices are correct.