b and c were wrong

On January 4, Year 1, Ferguson Company purchased 112,000 shares of Silva Company directly from one of the founders for a price of $58 per share. Silva has 350,000 shares outstanding, induding the Daniels shares. On July 2, Year 1 , Silva paid $302,000 in total dividends to its shareholders. On December 31, Year 1, silva reported a net income of $1,007,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involvina its imvactmant is reecopoes T check tay Work? a. Jan 4: Record the investment at cost. July 2: Calculate the ownership percentage. Under the equity method of accounting for investments, the dividenis earned affect the Dec. 31: Calculate the ownership percentage. Under the equity method of accounting investment account. Determine the December 31, Year 1, balance of Investment in Silva Company Stock. Feedback Check My Work b. Set up a T account for the Investment account and calculate the ending investment usi