15-2 15-03 Equity Method

On January 2, Yorkshire Company acquired 31% of the outstanding stock of Fain Company for $330,000. For the year ended December 31, Fain Company earned income of $86,000 and paid dividends of $26,000.

Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.

Jan. 2 - Purchase

Dec. 31 - Income

Dec. 31 - Dividends