Journal entries to apply the equity method of accounting for investment in securities. The following information summarizes data about the minority, active investments of Stebbins Corporation.

Company R owns a building with 10 years of remaining life and with a fair value exceeding its carrying value by $160,000. $40,000 of this amount applies to the share Stebbins Corporation Owns. Stebbins Corporation attributes the rest of any excess of acquisition cost over carrying value acquired to goodwill. The building has a 10-year remaining life. The fair values of the recorded net assets of Company S and Company T equal their carrying values. There are no goodwill impairments.
a. Give the journal entries to record the acquisition of these investments and to apply the equity method during 2008 and 2009.
b. Stebbins Corporation sells Security R on January 1, 2010, for $275,000. Give the journal entry to record thesale.

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Carrying Value of Identifiable Net Assets on January 1, 2008 Date Acquisition Cost Ownership Percentage Acquired Security R. 1/1/2008 SB00,000 $250,000 25% 1/1/2008 1/1/2008 325,000 40 750,000 475,000 50 950,000 Earmings (Loss) Dividends Security 2008 2009 2008 2009 $ 200,000 R. $225,000 $125,000 $130,000 120,000 75,000 B0,000 80,000 (150,000) 50,000