Pizza Corporation purchased 100 percent of the common stock of Slice Corporation on January 1, 20X2, by issuing 45,000 shares of its $6 par value common stock. The market price of Pizza’s shares at the date of issue was $24. Slice reported net assets with a book value of $980,000 on that date. The amount paid in excess of the book value of Slice’s net assets was attributed to the increased value of patents held by Slice with a remaining useful life of eight years. Slice reported net income of $56,000, paid dividends of $20,000 in 20X2, reported a net loss of $44,000, and paid dividends of $10,000 in 20X3.

Required

Assuming that Pizza Corporation uses the equity method in accounting for its investment in Slice Corporation, prepare all journal entries for Pizza for 20X2 and 20X3.