Power Corporation purchased 35 percent of the common stock of Snow Corporation on January 1, 20X2, by issuing 15,000 shares of its \(\$ 6\) par value common stock. The market price of Power's shares at the date of issue was \(\$ 24\). Snow Corporation reported net assets with a book value of \(\$ 980,000\) on that date. The amount paid in excess of the book value of Snow Corporation's net assets was attributed to the increased value of patents held by Snow with a remaining useful life of eight years. Snow Corporation reported net income of \(\$ 56,000\) and paid dividends of \(\$ 20,000\) in 20X2 and reported net loss of \(\$ 44,000\) and paid dividends of \(\$ 10,000\) in 20X3.

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