On January 1, 2021, Manama Co. purchased 40,000 shares of Musandam Company common stock

for $400,000, giving Manama 25% ownership and the ability to apply significant influence over

Musandam. On that date, the book value of Musandam was $975,000. A building with a carrying

value of $190,000 was worth $260,000. The building had a remaining life of ten years. Musandam

owned a trademark valued at $140,000 over cost that was to be amortized over 8 years.

Musandam reported net income of $225,000 during 2021 and declared dividends of $ 85,000.

Required:

Prepare all of Manama's journal entries for 2021 in relation to its investment in Musandam Co.