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.

Your answer is partially correct. Try again. Record the above transactions assuming Coronado uses the equity method to report its investment in Sugar Maple Candy Company. (Credit account titles ar 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 M X Investment in Associate 108000 Cash 108000 (To record purchase of investment.) Dec. 31 X Cash 252,000 Investment in Associate 252,000 (To record collection of dividend from associate.) Dec. 31 X Investment in Associate 5400000