Assessing Financial Statement Effects Investments

On January $1,$ Ball Corporation purchased shares of Leftwich Company common stock.

$($a$)$ Assume that the stock acquired by Ball represents $15\%$ of Leftwich's voting stock and that Ball has no influence over Leftwich's business decisions. Use the financial statement effects template to record the following transactions:

$(1)$ Ball purchased $10,000$ common shares of Leftwich at $$17$ cash per share.

$(2)$ Leftwich reported annual net income of $$80,000.$

$(3)$ Ball received a cash dividend of $$1\mathrm{.}20$ per common share from Leftwich.

$(4)$ Year$-$end market price of Leftwich common stock is $$19$ per share.

Use negative signs with your answers, when appropriate.

$\backslash$table$[[$Transaction$,$Balance Sheet$],[,,$Noncash,,,,Contributed,,Earned$],[$Cash Asset,$+-,$Assets,$=,$Liabilities,$4,$Capital,$+,$Capital$],[(1),$a$,,,,0,,,0,2],[(2),0,,,?,0,,,0,$c$],[(3),0,,,,0,,,0,],[(4),0,,,0,0,,,0,]]$

$\backslash$table$[[$Income Statement$],[$Revenue$,$Expenses,$\backslash$table$[[$Net$],[$Income$]]],[0,0,0],[0,0,0],[0,0,0],[0,0,0]]$