1. Calamari Company purchased 35% of Squid Company for $900,000 (equity method) in cash on January 1, 2021 On the date of purchase, Squids book value was $2,000,000. Excess of cost over book value amounting to $30,000 is due to undervalued Equipment and is to be amortized over 4 years. The rest is due to Goodwill.

Journalize the following for 2021 on the books of Calamari, assuming Calamari uses the equity method:

1. Squid reported a total net income of $800,000. Journalize the recording of the correct income on the books of Calamari.
2. Total dividends paid by Squid amounted to $100,000. (only own 35%)
3. The market value of Calamaris investment in Squid at year end had changed to $960,000.
4. Calamari then sold half of its investment in Squid, losing significant influence, for $450,000.