Belacor Inc. has obtained significant influence over Mayfair Corp by buying 30% of Mayfair's 40,000 outstanding shares. Belacor purchased the shares at $12 per share on January 1, 2021. On July 1, Mayfair Corp. declared and paid cash dividends of $52,000 to all stockholders. At the end of the year on December 31, 2021, Mayfair Corp. reported Net Income of $160,000 for the year. The market price of Mayfair Corp was $14 per share on December 31, 2021.

What is the journal entry for Belacor Inc. on December 31, 2021?

Question 28 options:

a)

Equity Investments	48,000
Investment Income		48,000

b)

Cash	15,600
Equity Investments		15,600

c)	No entry is needed.

d)

Fair Value Adjustment	24,000
Unrealized Holding Gain or Loss-Income		24,000