Masterson paid $205,000 for 40% of the shares of McGuire. Masterson exerts significant influence over McGuire. Prepare journal entries to record the following:

1. McGuire reported earnings of $60,000 during the year.

2. McGuire paid dividends of $14,000 during the year.

3. What amount would Masterson report on its balance sheet as investment in McGuire. (Hint: Use a T account to help you answer this question)

4.Masterson sold its entire investment in McGuire for $230,000

Account Name	Debit	Credit