Question: Arnold inc declares and distributes a 10% common stock dividend when it has 20,000 shares of $10 par value common stock outstanding. if the market

Arnold inc declares and distributes a 10% common stock dividend when it has 20,000 shares of $10 par value common stock outstanding. if the market value of the common stock is $25, the journal entry to record the stock dividend would include a:

A. debit to R/Earnings 50,000

B. debit to R/Earnings 20,000

C. Credit to Paid-in Capital in excess of par- common 50,000

D. Credit to paid in capital in excess of par common 20,000

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