Current Attempt in Progress

Bramble Charles Inc. acquired $20\%$ of the outstanding common stock of Theresa Sunland Inc. on December $31,2025.$ The purchase

price was $$1,320,800$ for $50,800$ shares. Sunland Inc. declared and paid an $$0\mathrm{.}90$ per share cash dividend on June $30$ and on December

$31,2026.$ Sunland reported net income of $$755,000$ for $2026.$ The fair value of Sunland's stock was $$29$ per share at December $31,$

Assume that the security is a trading security.

$($a$)$

Prepare the journal entries for Bramble Charles Inc. for $2025$ and $2026,$ assuming that Charles can exercise significant influence

over Sunland. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not

indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the

order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

Equity Investments

Cash

Equity Investments

Equity Investments

$($To record dividend.$)$