Equity Method

On January 2, Yorkshire Company acquired 38% of the outstanding stock of Fain Company for $380,000. For the year ended December 31, Fain Company earned income of $99,000 and paid dividends of $30,000.

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

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Dec. 31 - Income

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Dec. 31 - Dividends

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