Sara Corporation has 60,000 shares of $6 par value common stock outstanding. It declared a 15% stock dividend on May 1 when the market price per share was $10. The shares were issued on June 1.

The entry for the declaration of the stock dividend will include: *

Debit Stock Dividend $60,000

Debit Stock Dividend $54,000

Debit Common Stock Dividend Distributable $54,000

Debit Stock Dividend $90,000

None of the above

After stock dividend, the new number of common stocks outstanding is: *

600,000 shares

69,000 shares

60,000 shares

9,000 shares

None of the above