Tammy Corporation has 350,000 common shares outstanding. They have declared a 5% stock dividend. The current market price of the common shares is $7.50/share. The amount that will be debited to retained earnings on the date of declaration is:

Select one:

A.

$78,750.

B.

$183,750.

C.

$52,500.

D.

$131,250.

E.

$121,350.