Adams Moving and Storage, a family-owned corporation, declared a property dividend of 2,000 shares of GE common stock that Adams had purchased in February for $84,000 as an investment. GEs shares had a market value of $40 per share on the declaration date.

Prepare the journal entries to record the property dividend on the declaration and payment dates.

1. Record adjustment of stock to fair value

2. Record the journal entry on the declaration date

3. Record the journal entry on the payment date