Entries for equity investments: $20\%50\%$ ownership

On January $4,20$Y$4,$ Ferguson Company purchased $480,000$ shares of Silva Company$$s common stock directly from one of the founders for a price of $$30$ per share. Silva has $1,200,000$ shares outstanding, including the Daniels shares. On July $2,20$Y$4,$ Silva paid $$750,000$ in total dividends to its shareholders. On December $31,20$Y$4,$ Silva reported a net income of $$2,000,000$ for the year.

Question Content Area

a$.$ Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during $20$Y$4.$ If an amount box does not require an entry, leave it blank.

$20$Y$4,$ Jan. $4$

$20$Y$4,$ July $2$

$20$Y$4,$ Dec. $31$

Question Content Area

b$.$ Determine the December $31,20$Y$4,$ balance of the investment in Silva Company stock account.

$fill in the blank $25$fa$5$e$006$ff$3005\_1$