ABC declared a property dividend. The dividend consisted of Land. The land had originally been purchased $40,000. The value of the land on the declaration date is $70,000. What is the first entry that should be recorded related to this dividend?

• Retained earnings 70,000 Property dividends payable 70,000
• Retained earnings 70,000 Property dividends payable 40,000 Gain 30,000
• Land 30,000 Retained earnings 30,000
• Land 30,000 Gain on investments 30,000

Multiple Choice