Equity Method

On January 2, Yorkshire Company acquired 29% of the outstanding stock of Fain Company for $420,000. For the year ended December 31, Fain Company earned income of $109,000 and paid dividends of $34,000.

Prepare 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	Investment in Fain Company Stock
	Cash
Dec. 31 - Income	Investment in Fain Company Stock
	Income of Fain Company
Dec. 31 - Dividends	Cash
	Investment in Fain Company Stock