1. Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. 

What is the amount of cash for dividend payments during the year ?

2. A company with 81,210 authorized shares of $7 par common shares issued 47,603 shares at $12 per share. The company subsequently declared a 2% stock dividend on a date when the market price was $22 per share. 

What is the amount transferred from the retained earnings account to the paid-in capital accounts as a result of the stock dividend?