On January 1, 2013, Pluto Company acquired an 80% interest in Solarium Company for $1,070,000. Solarium reported common stock of $1,000,000 and retained earnings of $400,000 on this date. Any difference between implied value and the book value interest acquired is attributable to land.

Other information available for Solarium Company is shown below:

	Net Income	Cash Dividen
2013	130,000	160,000

Pluto Company uses the cost method to account for its investment in Solarium Company.

Required:

A. Prepare the general journal entries for 2013 to record the receipt of the cash dividends.

B. Prepare in general journal form the workpaper entries necessary in the consolidated statements workpaper for the year end December 31, 2013.