On February 16, a Company Declares a 34 $\prime$ Dividend to Be Paid on April 5

Multiple Choice

On February 16, a company declares a 34 $\prime$ dividend to be paid on April 5. There are 2 million shares of common stock issued and 100,000 shares of treasury stock. What does the company record in February?

A) A debit to Dividends Payable and a credit to Cash for $680,000.
B) A debit to Dividends Declared and a credit to Dividends Payable for $646,000.
C) A debit to Dividends Payable and a credit to Cash for $646,000.
D) A debit to Dividends Declared and a credit to Dividends Payable for $680,000.