V-In-Future, Inc., [VIF] reported 1,000,000 no par common shares and 500,000 no par, $0.60 preferred shares authorized, on January 1, 2018. On the same date, 600,000 common shares [contributed capital $1,800,000] and 350,000 preferred shares [contributed capital $1,750,000] were outstanding.

For This Question Only, assume that the company declared a 8% stock dividend on February 1, 2018, when the market price of the common shares was $4.05 each, prior to this dividend declaration. What entry, if any, should VIF make to record this transaction?

a. No Journal Entry required for this transaction. Only a Proforma Entry should be made.

b. DEBIT-Common Stock Dividend [$243,000];  
CREDIT-Common Stock Capital [$180,000];  CREDIT-Contributed Surplus - Stock Dividends [$63,000].

c. DEBIT-Retained Earnings [$225,000];  CREDIT-Common Stock Dividend Distributable [$225,000].

d. DEBIT-Common Stock Dividend [$180,000];  CREDIT-Common Stock Capital [$180,000].

e. DEBIT-Retained Earnings [$180,000];  CREDIT-Common Stock Dividend Distributable [$180,000].