On January 1, 2017, XYZ Company purchased 80,000 shares of the stock of Rayco, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $325,000, and represents a 25% ownership stake. Rayco made $4,725,000 of net income in 2017, and paid dividends of $500,000. The price of Raycos stock increased from $70 per share at the beginning of the year, to $82 per share at the end of the year.

Prepare the January 1 and December 31 general journal entries for XYZ Company.

How much should the XYZ Company report on the balance sheet for the investment in Rayco at the end of 2017?

Date	Account Title	Debit	Credit
1/1	Account to debit	Amount
	Account to credit		Amount
12/31	Account to debit	Amount
	Account to credit		Amount
12/31	Account to debit	Amount
	Account to credit		Amount
	Stock Investments Accounts Balance 12/31/2017	Amount