Equity Method

On January 2, Yorkshire Company acquired 37% of the outstanding stock of Fain Company for $360,000. For the year ended December 31, Fain Company earned income of $94,000 and paid dividends of $29,000.

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	Income of Fain Company
	Cash
Dec. 31 - Income	Cash
Dec. 31 - Dividends