On February 16, a company declares a 41 dividend to be paid on April 5. There are 2.07 million shares of common stock issued and 107,000 shares of treasury stock. What does the company record in February?

A debit to Dividends Payable and a credit to Cash for $804,830.

A debit to Dividends Declared and a credit to Dividends Payable for $848,700.

A debit to Dividends Payable and a credit to Cash for $848,700.

A debit to Dividends Declared and a credit to Dividends Payable for $804,830.