Silva Inc owns shares of Costa Corporation classified as a
Silva Inc. owns shares of Costa Corporation classified as a non-trading equity investment. At December 31, 2010, the non-trading equity investment was carried in Silva’s accounting records at its cost of R$875,000, which equals its fair value. On September 21, 2011, when the fair value of the investment was R$1,200,000, Silva declared a property dividend whereby the Costa securities are to be distributed on October 23, 2011, to shareholders of record on October 8, 2011. Prepare all journal entries necessary on those three dates.

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