Journal entries to apply the equity method of accounting for investments in securities.
Wood Corporation made three long-term intercorporate investments on January 2. Data relating to these investments for the year appear below.

Give the journal entries to record the acquisition of these investments and to apply the equity method during the year. Wood amortizes goodwill over 20 years.(Appendix)

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Book Value and Market Value Net Income (Loss) for the Year Dividends Declared. during the Year $30,000 Percentage of Net Assets Company Acquired on January 2 Acquisition Cost Knox Corporation 50% $700,000 $350,000 $70,000 Vachi Corporation 30 520,000 196,000 40,000 Snow Corporation 20 400,000 100,000 (24,000) 16,000