On January 1, 2019, Hill Corporation acquired 40% of the outstanding common stock (400 of 1,000 outstanding shares) of Valley Manufacturing Inc. for $60,000, which equals the book value of Valley. On December 31, 2019, Valley reported net income of $30,000 and declared and paid a cash dividend of $11,500.
Required:
1. Prepare the journal entries made by Hill to record the transactions related to its investment in Valley.
2. Give the title and amount of each item (except Cash) related to the investment on the December 31, 2019 balance sheet. Name the balance sheet section in which each item appears.