The stockholders equity of Concord Inc. at December 31, 2013, appears below:

Common stock, $15 par value, 200,000 shares authorized,135,000 shares issued and outstanding	2,025,000
Paid-in capital in excess of par value	1,750,000
Retained earnings	2,375,000

During 2014, the following transactions occurred:

May 10: Declared and issued a 10% common stock dividend when market value was $40 per share

December 10: Declared a cash dividend of $2.50 per share to be paid in January 2015.

December 31: Recognized net income of $ 1,087,000.

a. Prepare the journal entry to record the stock dividend.

b. How much was the cash dividend paid?

Ans: ___________________