Exercise 17-12 The following are two independent situations.

Situation 1 Wildhorse Cosmetics acquired 10% of the 191,000 shares of common stock of Martinez Fashion at a total cost of $14 per share on March 18, 2017. On June 30, Martinez declared and paid $81,300 cash dividend to all stockholders. On December 31, Martinez reported net income of $118,600 for the year. At December 31, the market price of Martinez Fashion was $15 per share.

Situation 2 Sheffield, Inc. obtained significant influence over Seles Corporation by buying 30% of Seless 32,500 outstanding shares of common stock at a total cost of $9 per share on January 1, 2017. On June 15, Seles declared and paid cash dividends of $37,700. On December 31, Seles reported a net income of $83,000 for the year.

Prepare all necessary journal entries in 2017 for both situations