Anderson Corp

Multiple Choice

Anderson Corp. declared a 5% stock dividend on its 20,000 outstanding shares of $1 par value common stock, which had a fair value of $5 per share on the declaration date. The accounting entry on the declaration date would include a

A) debit to Paid-In Capital of $1,000.
B) credit to Paid-In Capital of $4,000.
C) debit to Stock Dividends of $4,000.
D) credit to Common Stock of $5,000.
E) credit to Stock Dividends of $5,000.