When there were 500,000 authorized shares of $5 par value common stock, 50,000 shares issued, and 45,000 shares outstanding, and the market price was $9 per share, Your Company issued a 10% stock dividend. What was the entry to retained earnings when this transaction is recorded?

choices:

A $78,750 credit

B $40,500 debit

C $40,500 credit

D $78,750 debit

E $45,000 debit