Wildcat Mining Limited is nearing the end of the useful life of its only remaining natural resource that it is mining in northern Quebec. The balance of its Common Shares account is $2,500,000, Retained Earnings is $3,850,000, and Accumulated Depletion is $2,800,000. The board of directors recently declared and paid a $5.50 dividend to each of the 1 million outstanding common shares. Wildcat records cash dividends directly to Retained Earnings. Prepare the journal entry for the declaration and payment of this liquidating dividend (assume only one journal entry is needed for declaration and payment) and explain how the amount received should be handled by shareholders (that is, what instructions should be communicated by Wildcat’s board of directors).