White Corp. has outstanding 40,000 shares of $5 par value common stock. At year-end, the company declares and issues a 6% common stock dividend when the market price of the stock is $22 per share. What will be the entry to retained earnings as a result of this stock dividend?

a. 40,800 credit

b. 12,000 debt

c. 40,800 debit

d. 52,800 debit