Turner Corporation reported the following balances at January 1, 20X9:

On January 1, 20X9, Chad Corporation purchased 40 percent of the stock of Turner Corporation. All tangible assets had a remaining economic life of 10 years at January 1, 20X9. Both companies use the FIFO inventory method. Turner reported net income of \(\$ 40,000\) in \(20 \mathrm{X} 9\) and paid dividends of \(\$ 8,000\). Chad uses the equity method in accounting for its investment in Turner.
\section*{Required}
Give all journal entries recorded by Chad during \(20 \mathrm{X} 9\) with respect to its investment assuming:

a. Chad paid \(\$ 175,000\) for the ownership of Turner on January 1, 20X9. The amount of the differential assigned to goodwill is not amortized.

b. Chad paid \(\$ 140,000\) for the ownership of Turner on January 1, 20X9.

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Item Cash Book Value $ 45,000 Fair Value $ 45,000 60.000 Accounts Receivable Inventory Buildings and Equipment Total Assets Accounts Payable Common Stock ($10 par value) 60.000 120.000 130.000 300,000 240,000 Less: Accumulated Depreciation (150.000) $375,000 $475,000 $ 75.000 $ 75,000 100,000 Additional Paid-In Capital 30.000 Retained Earnings 170,000 Total Liabilities and Equities $375,000