Novak Edward Inc. acquired 20% of the outstanding common stock of Theresa Sunland Inc. on December 31, 2025. The purchase price was $1,097,800 for 49,900 shares. Sunland Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2026. Sunland reported net income of $769,000 for 2026. The fair value of Sunland's stock was $25 per share at December 31, 2026. Assume that the security is a trading security. (a) Prepare the journal entries for Novak Edward Inc. for 2025 and 2026, assuming that Edward cannot exercise significant influence over Sunland. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

Novak Edward Inc. acquired 20% of the outstanding common stock of Theresa Sunland Inc. on December 31, 2025. The purchase price was $1.097,800 for 49,900 shares. Sunland Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2026. Sunland reported net income of $769.000 for 2026. The fair value of Sunland's stock was $25 per share at December 31 . 2026. Assume that the security is a trading security. (a) Prepare the journal entries for Novak Edward inc, for 2025 and 2026, assuming that Edward cannot exercise significant influence over Sunland. (List all debit entries before credit entries. Credit account tities are automatically indented when omount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record joumal entries in the order presented in the problem.)