Silva SpA owns shares of Costa S.A. classified as a trading equity investment. At December 31, 2019,

Question:

Silva SpA owns shares of Costa S.A. classified as a trading equity investment. At December 31, 2019, the 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, 2020, when the fair value of the investment was R$1,200,000, Silva declared a property whereby the Costa securities are to be distributed on October 23, 2020, to shareholders of record on October 8, 2020. Prepare all journal entries necessary on those three dates.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...