A company originally issued 13,000 shares of $6 par value common stock at $12 per share The board of directors declares a 12% stock dividend when the market price of the stock is $22 a share. Which of the following is included in the entry to record the declaration of a stock dividend?

A) Stock Dividends is debited for $34,320.
B) Stock Dividends is credited for $34,320.
C) Stock Dividends is debited for $18,720.
D) Paid-In Capital in Excess of Par-Common is credited for $18,720.

A .A) 13,000 x 12% x $22 market price = $34,320 total dividend debited to Stock Dividends