The stockholders equity section of Prancer Company showed the following:

Common Stock--$20 par value, 60,000 shares issued and outstanding	$1,200,000
Contributed Capital in excess of par value, common stock	3,600,000
Retained Earnings	3,200,000

Prancer declared a 10% stock dividend on a day when the market value of the stock was $60 per share. The stock dividend will:

Select one:

A. Increase Paid-in capital in excess of par value, Common Stock by $360,000

B. Increase Common Stock by $360,000

C. Decrease Retained Earnings by $240,000

D. Increase Paid-in capital in excess of par value, Common Stock by $240,000