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Equity Method On January 2, Yorkshire Company acquired 30% of the outstanding stock of Fain Company for $440,000. For the year ended December 31, Fain earned income of $114,000 and paid dividends of $35,000 Journalize the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company Jan. 2 - Purchase Dec. 31 - Income Dec 31 - Dividends Equity Method for Stock Investment On January 4, 2016, Spandella Company purchased 112,000 shares of Filington Company directly from one of the founders for a price of $64 per share. Filington has 400,000 shares outstanding, including the Spandella shares. On July 2, 2016, Filington paid $274,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,007,000 for the year. Spandella uses the equity method in accounting for its investment in Filington a. Journalize the Spandella Inc. entries for the transactions involving its investment in Filington Company during 2016 20Y6 Jan. 4 2016 July 2 2016 Dec. 31 b. Determine the December 31, 2076, balance of the investment in Filington Company stock account