Ball Corporation purchased 30 percent of the common stock of Krown Company on January 1. 20X5, by issuing preferred stock with a par value of \(\$ 50.000\) and a market price of \(\$ 120.000\). The following amounts relate to the balance sheet items of Krown Company at that date:

Buildings and equipment were purchased by Krown Company on January 1, 20X0, with an expected economic life of 20 years. No change in overall expected economic life occurred as a result of the acquisition of stock by Ball Corporation. The amount paid in excess of the fair value of the reported net assets of Krown Company is attributed to unrecorded copyrights with a remaining useful life of eight years. During 20X5. Krown Company reported net income of \(\$ 40.000\) and paid dividends of \(\$ 10,000\).
\section*{Required}
Give all journal entries to be recorded on the books of Ball Corporation during 20X5, assuming it uses the equity method in accounting for its ownership of Krown Company.

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Cash and Receivables Book Value Fair Value $200.000 400,000 $200.000 Buildings and Equipment 360,000 Less: Accumulated Depreciation (100,000) Total Assets $500.000 Accounts Payable $ 50.000 50.000 Bonds Payable 200,000 200,000 Common Stock 100.000 Retained Earnings 150.000 Total Liabilities and Equities $500.000