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ABC corporation purchased 50,000 shares of XYZ corporation at $11 per share. Assume this investment does represent significant ownership (40% of the shares of XYZ

ABC corporation purchased 50,000 shares of XYZ corporation at $11 per share. Assume this investment does represent significant ownership (40% of the shares of XYZ corporation). Prepare the journal entries for the following scenarios:

a. Original purchase of the shares.

b. XYZ corporation declared and paid dividends of $0.50 per share.

c. XYZ earned $100,00 in net income during the year.

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