Rose Co. had 30 million shares of $1 par common stock outstanding at January 1, 2021. In October 2021, Rose Co.'s Board of Directors declared and distributed a 1% common stock dividend when the market value of its common stock was $60 per share. In recording this transaction, Rose would:

Multiple Choice

Debit retained earnings for $18 million.

Credit common stock for $18 million.

None of these answer choices are correct

Credit paid-in capitalexcess of par for $18 millio