ABC declared a property dividend. The dividend consisted of 10,000 common shares of its investment in XYZ Company. The shares had originally been purchased at $4 per share and had a $1 par. The value of the shares on the declaration date is $7 per share. What is the FIRST part of the journal entry that should be recorded related to this dividend?

Retained earnings	70,000
Property dividends payable		70,000

Investment in equity securities (XYZ)	30,000
Gain on investments		30,000

Investment in equity securities (XYZ)	30,000
Retained earnings		30,000

Retained earnings	70,000
Property dividends payable		40,000
Gain		30,00