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

Common stock$10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding$600,000Paid-in capital in excess of par value, common stock425,000Retained earnings550,000Total stockholders' equity$1,575,000On February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $40 per share on February 5 before the stock dividend. The stock's market value is $33.40 per share on February 28.

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

2. One stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder's shares immediately beforeandafter the stock dividend of February 5.

3. Compute the total market value of the investor's shares in part 2 as of February 5 and February 28.