Rick Co. had 37 million shares of $2 par common stock outstanding at January 1, 2021. In October 2021, Rick Co.'s Board of Directors declared and distributed a 2% common stock dividend when the market value of its common stock was $66 per share. In recording this transaction, Rick would:

Multiple Choice

• Credit common stock for $48.84 million.

• Debit retained earnings for $48.84 million.

• None of these answer choices are correct.

• Credit paid-in capitalexcess of par for $48.84 million.