The shareholders equity of Core Technologies Company on June 30, 2015, included the following:

Common stock, $1 par; authorized, 7 million shares; issued and outstanding, 3 million shares	$	3,000,000
Paid-in capitalexcess of par		12,000,000
Retained earnings		16,000,000

On April 1, 2016, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies common stock was $36 on April 1, 2016, and $46 on June 1, 2016.

Required:

Complete the below table to calculate the stock dividend.

Prepare the journal entries to record the declaration and distribution of the stock dividend

1. Record the declaration of the stock dividend

2. Record the distribution of the stock dividend