Phelps Company distributed the following dividends to its stockholders:

(a) 450,000 shares of Bedrock Corporation stock, carrying value of investment, $975,000; fair market value, $1,350,000.

(b) 220,000 shares of Great Basin Company stock, a closely held corporation. The shares were purchased by Phelps three years ago at $6.25 per share, but no current market price is available.

Indicate the journal entries to account for the declaration and the payment of the dividends.