Question: Mark Corporation declared and distributed a 5% stock dividend. Mark had 400,000 common shares outstanding and 1,000,000 common shares authorized before the stock dividend. The

Mark Corporation declared and distributed a 5% stock dividend. Mark had 400,000 common shares outstanding and 1,000,000 common shares authorized before the stock dividend. The board of directors determined the appropriate market value per share as $7.

Required:

How much should be recorded for the stock dividend? Record the journal entry (if any) for the shares distributed.

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