Equity Method

On January 2, Leonard Company acquired 41% of the outstanding stock of Bristol Company for $380,000. For the year ended December 31, Bristol Company earned income of $99,000 and paid dividends of $30,000.

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Prepare the entries for Leonard Company for the purchase of the stock, the share of Bristol income, and the dividends received from Bristol Company.

Jan. 2 - Purchase
Dec. 31 - Income
Dec. 31 - Dividends