For this problom, is the journal entry (2) in bold/ italic correct, please advice with explanation?

Property dividend is an investment in equity securities available for sale:

The Remley company declares a property dividend on 3/15/15, Payable in Welch company stock. The Welch stock had been purchased early in 2014 for $24,000 and was reported as an asset at a fair value of $29,000 on 12/31/14 balance sheet.

The market value of Welch stock is $31,000 on 3/15/15. The following entries are made on 3/15/15 (the declaration date):

Adj. prior to the recog. Of dividends payable:

1) Fair Value Adjustment 2,000

Unrealized holding gain-B/S 2,000

2) Unrealized holding gain 7,000

Gain on Disposal of Investment 7,000

J.E. on the declaration date:

Retained Earnings 31,000

Property Dividends Payable 31,000

J.E. on the payment date:

Property Dividends Payable 31,000

Equity Investments 24,000

Fair Value Adjustment 7,000