Norris Company has the following capital structure: Common stock, $1 par, 100,000 shares issued and outstanding.

On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020.

Upon declaration of the stock dividend, Norris Company would record

Group of answer choices:

A) A debit to Retained Earnings for $5,000

B) A credit to Dividends Payable for $70,000

C) A credit to Paid-in Capital in Excess of ParCommon Stock for $70,000

D) A credit to Retained Earnings for $75,000