On January 1, 2016, Pultey Company acquired an 80% interest in Saucey Company for $1,070,000. Saucey 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 Saucey Company is shown below:

Net Income Cash Dividends

2016 $130,000 $160,000

Pultey Company uses the cost method to account for its investment in Saucey Company.

Required:

Prepare the general journal entries for 2016 to record the receipt of the cash dividends.

Prepare in general journal form the workpaper entries necessary in the consolidated statements workpaper for the year end December 31, 2016.