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Please explain it

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Please explain it

Equity Method for Stock In On January 4, Year 1, Ferguson Company purchased 80,000 shares of Silva Company directly from one of the founders for a price of $49 per share. Silva has 250,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $196,000 in total dividends to its shareholders. On December 31, Year 1, Slva reported a net income of $747,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its t in Silva Company during Year 1 b. Previous Next Check My Work 2 more Chack My Work uees remaning