Carla Vista Co. acquired 25% of the 520,000 shares of outstanding common stock of Vaughn Inc. on December 31, 2025. The purchase price was $3,679,000. Vaughn declared and paid $1.30 per share cash dividends on June 18, 2026, and on November 29, 2026. Vaughn reported net income of $1,300,000 for 2026. The fair value of Vaughn common stock was $28 per share at December 31, 2026. (a) Your answer is partially correct. Prepare the journal entries for Carla Vista Co. for 2026, assuming that Carla Vista cannot exercise significant influence over Vaughn. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Equity Investments Cash Debit 3,679,000 Credit 3,