=+EX 15-8 Entries for available-for-sale stock investments and dividends obj. 3 At a total cost of $710,000, Abbott Corporation acquired 50,000 shares of Costello Corp.

common stock as a long-term investment. Abbott Corporation uses the equity method of accounting for this investment. Costello Corp. has 200,000 shares of common stock outstanding, including the shares acquired by Abbott Corporation.

Journalize the entries by Abbott Corporation to record the following information:

a. Costello Corp. reports net income of $1,280,000 for the current period.