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On 01/01/2013, Yaro Company owns 30% of the common stock of Dew Co. with $450,000 cash and 10,000 shares ($1 face value and $15 market

On 01/01/2013, Yaro Company owns 30% of the common stock of Dew Co. with $450,000 cash and 10,000 shares ($1 face value and $15 market value) that are issued acquire the Dews shares. Assume that Yaro gain significance influence over Dew.

During 2013, Dew reported income of $250,000 and paid cash dividends of $80,000. There is no amortization associated with the investment. During 2013, how much income should Yaro recognize related to this investment? What is the balance of the investment account by the end of 2013? Please also write down the journal entries that are related to the investment account.

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