_ Ren Inc. owns shares of Stimpy Corporation stock classified as available-for-sale securities. At 7) December 31, 2006, the available-for-sale securities were carried in Ren’s accounting records at their cost

| of $875,000, which equals their market value. On September 21, 2007, when the market value of the

| securities was $1,400,000, Ren declared a property dividend whereby the Stimpy securities are to be distributed on October 23, 2007, to stockholders of record on October 8, 2007. Prepare all journal entries nec-

| essary on those three dates.