ABC company uses the Fair Value Method to account for investments in XYZ company. Ignore closing entries recorded on december 31 to close temporary accounts. The ABC company ends its year December 31. Prepare Journal Entries for the info provided.

1. ABC bought 20% of XYZ common stock for 190,000. Total book value of XYZ was 800,000.

2. XYZ reported 60,000 of net income and paid its shareholders a total of 30,000 of cash dividends.

3. XYZ common stock had a total fmv of 1,000,000.

4. XYZ reported a net loss of 10,000 and paid its shareholders a total of 5,000 cash dividends.

5. All XYZ common stock had a total fmv of 940,000.