On January 1, 2021, Coronado Ltd., a private company, buys 25% of Sugar Maple Candy Company's 180,000 common shares for $432,000. On December 31, 2021, Sugar Maple pays a $31,500 cash dividend and reports profit of $252,000. At December 31, 2021, Sugar Maple's shares are trading at $12.50 per share. Both companies have a December 31 year end. Coronado is able to appoint one board member to Sugar Maple's board of directors and this person has been influential in directing the operations of the company.

(a) Record the above transactions assuming Coronado uses the equity metho Do not indent manually. If no entry is required and Explanation Jan. 1 Investment in Associate Dividend Receivable No Entry Dividend Payable Dec. 31 Long-Term Investments-Image Fashion Common Shares Short-Term Investments-Image Fashion Common Shares Cash Dividend Revenue Dec. 31 Income from Investment in Associate6- On January 1, 2021, Coronado Ltd., a private company, buys 25% of Sugar Maple Candy Company's 180,000 common shares for $432,000. On December 31, 2021, Sugar Maple pays a $31,500 cash dividend and reports profit of $252,000. At December 31, 2021, Sugar Maple's shares are trading at $12.50 per share. Both companies have a December 31 year end. Coronado is able to appoint one board member to Sugar Maple's board of directors and this person has been influential in directing the operations of the company. (a) Record the above transactions assuming Coronado uses the equity method to report its investment in Sugar Maple Candy Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record purchase of investment.) Dec. 31 (To record collection of dividend from associate.) Dec. 31 record investment income from associate.)