On October 1, 2024, the board of directors of Tecumseh Corporation declared a 30% stock dividend. On the declaration date, there were 55,000 common shares issued and outstanding. The fair market value of the shares on October 1, 2024, was $125 per share. The stock dividend was distributed on October 31, 2024, to shareholders of record on October 15, 2024.

Required 

a. Prepare the journal entries required to record the stock dividend.

b. What is the market price of the shares after the stock dividend if the market reacts as expected?