ABC declared a property dividend. The dividend consisted of 18,000 common shares of its investment in XYZ Company. The shares had originally been purchased at $1 per share and had a $1 par. The value of the shares on the declaration date is $8 per share. What is the first entry that should be recorded related to this dividend?

Multiple Choice

• Investment in XYZ	126,000
  Gain on appreciation of investment		126,000

• Retained earnings	144,000
  Property dividends payable		144,000

• Retained earnings	144,000
  Property dividends payable		18,000
  Gain on appreciation of investment		126,000

• Investment in XYZ	126,000
  Retained earnings		126,000