On January $1,2022,$ Winnie Corporation purchased $20\%(5,000$ shares$)$ of the outstanding stock

of Naomi Corporation for $$100,000.$ At the end of $2022,$ Naomi Corporation$$s stock had a fair

market value of $$24$ per share and at the end of $2023,$ the stock had a fair market value of $$22$ per

share.

During $2023,$ Naomi Corporation paid dividends of $$3\mathrm{.}00$ per share and earned $$60,000$ in net

income.

a$.$ Prepare the journal entries that Winnie would make during $2023$ assuming that

they do NOT have significant influence over Naomi as a result of their stock

ownership $($i$.$e$.$ fair value method$).$

Solve a with this format:

Investments

Cash

Cash

Dividend Revenue

Adjustment to market

Unrealized gain $($income$)$

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