Step 1: General form of the parabola.
The general equation of a parabola with its vertex at \( (h, k) \) and focus at \( (h, k + p) \) is:
\[
y^2 = 4px
\]
For a vertical parabola, the equation will be of the form:
\[
x^2 = 4py
\]
where \( p \) is the distance from the vertex to the focus.
Step 2: Use the given coordinates.
We are given the vertex \( (0, 4) \) and focus \( (0, 2) \), so the distance between the vertex and focus is \( p = 2 \).
Thus, the equation of the parabola is:
\[
x^2 = 8(y - 4)
\]
Step 3: Simplify the equation.
Rearranging this equation:
\[
x^2 + 8y = 32
\]
Step 4: Conclusion.
Thus, the equation of the parabola is \( x^2 + 8y = 32 \), which corresponds to option (C).