EX $15-11$ Equity method for stock investment

$$J$.3$

On January $4,2016,$ Spandella Company purchased $175,000$ shares of Filington Company directly from one of the founders for a price of $$30$ per share. Filington has $500,000$ shares outstanding, including the Penman shares. On July $2,2016,$ Filington paid $$620,000$ in total dividends to its shareholders. On December $31,2016,$ Filington reported a net income of $$1,050,000$ for the year. Spandella uses the equity method in accounting for its investment in Filington.

a$.$ Provide the Spandella Inc. journal entries for the transactions involving its investment in Filington Inc. during $2016.$

b$.$ Determine the December $31,2016,$ balance of the Investment in Filington Company. Stock account.