1. Berrys Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1, 2010, by paying $2,000,000 for 80,000 shares. Blakeley declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2010. Blakeley reported net income of $1200,000 for the year. At December 31, 2010, the market price of Blakeleys common stock was $28 per share.

Instructions

Prepare the journal entries for Berrys Concrete for 2010 assuming Berrys cannot exercise significant influence over Blakeley. (Use the cost method and assume Blakeley common stock should be classified as available-for-sale.)