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The stockholders' equity of TVX Company at the beginning of the day on February 5 follows:

Common stock$15 par value, 150,000 shares

authorized, 56,000 shares issued and outstanding$840,000Paid-in capital in excess of par value, common stock525,000Retained earnings675,000Total stockholders' equity$2,040,000

On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $34 per share on February 5 before the stock dividend. The stock's market value is $30 per share on February 28.

1.Prepare entries to record both the dividend declaration and its distribution.