Sheridan Company has 12500 shares of $100 par value common stock. Assuming that the proper journal entry was made to record a 10% common stock dividend on the declaration date when the market value of the stock was $120, which of the following accounts would be debited when the stock dividend is distributed?

Paid-in Capital in Excess of Par Value.

Retained Earnings.

Dividends Payable.

Common Stock Dividends Distributable.