Both Seco Inc. and Hillsborough Corp. have 100,000 shares of no-par common stock outstanding. World Inc. acquired 10,000 shares of Seco stock for $6 per share and 30,000 shares of Hillsborough stock for $12 per share in 2010. Both securities are being held as long-term investments. Changes in retained earnings for Seco and Hillsborough for 2010 and 2011 are as follows:

Instructions:
Give the entries required on the books of World Inc. for 2010 and 2011 to account for itsinvestments.

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Hillsborough Seco Inc. Corp $(45,000) $(45,000) Retained earnings (deficit). January I, 2010 Cash dividends, 2010 $175,000 37,500) $137,500 40,000 Net income, 2010 70,000 Retained earnings, December 31. 2010._..$177,500 (45.000) 70,000 $202,500 Cash dividends, 201 1 Net income, 2011 .. Retained earnings, December 31, 201 1 、.. .. Fair value of stock: December 31. 2010 (20,000) 40,000 $ 45,000 $ 7.50 6.50 December 31, 2011 15.00