Assuming that X Company purchases a 25% interest in Y company, journalize the following transactions for X Company under equity method

a. On january 1, 2012, x Company acquired 60,000 shares (25% of Mini Company common stock at a cost of $5 per share.

b. For the year 2012, Y Company reported net income of $300,000

c. At December 31, 2012, Y Company shares have a fair value of $13 per share.

d. On January 25, 2013, Y Company announced and paid a cash dividend of 200,000

e. For the year 2013, Y Company reported a net loss of $40, 000.