LONG-TERM INVESTMENT IN COMMON STOCK. On January 1, 1994, Braddock Corporation acquired 15% of the outstanding common stock (3,000 of 20,000 outstanding shares) of Nathan, Inc., for $90,000 cash ($30 per share, including commissions). Nathan declares and pays dividends on August 31 of each year—$4 per share on August 31, 19x4, and $5 per share on August 31, 19x5. On June 1, 19x85, Braddock sold 600 shares of its investment in Nathan for $33 per share. On December 31, 19x4; Nathan’s stock was selling for $27 per share; 1 year later, on December 31, 19x5, Nathan’s stock was selling for $29 per share.

REQUIRED:

1. Prepare the entries made by Braddock Corporation to record the events related to its investment in Nathan.

2. Give the title and amount of each item (except cash) on the December 31, 19x5, balance sheet related to the investment. Name the balance sheet section in which each item appears.