On January 1, Sandford Corporation had 80,000 shares of $10 par value common stock outstanding. On June 17, the company declared a 10% stock dividend. Market value of the stock was $15 on June 17. The entry to record the transaction of June 17 would include a:

A) debit to Retained Earnings for $120,000. B) debit to Retained Earnings for $80,000. C) credit to Common Stock for $120,000. D) credit to Common Stock for $40,000.