On January 1, 2021, Wildhorse Company, a public company, purchased 35% of the common shares of Triple Titanium Inc. for $500,000. The remaining shares (65%) are held by the family members of the companys founder. Wildhorse considers this a strategic investment and a critical step into developing consumer markets. Triple Titanium is currently a supplier to Wildhorse. Wildhorse placed two members on the 10-person board of directors of Triple Titanium and the two members believe they have been influential on the board through the year. Wildhorse and Triple Titanium both have December 31 year ends. During 2021, Triple Titanium reported profit of $280,000 and paid total dividends of $75,000.

(b)

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Prepare the following journal entries for Wildhorse, assuming significant influence does exist. (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.)

1.		The acquisition of the investment
2.		Investment revenue and receipt of dividends related to the investment

Date	Account Titles and Explanation	Debit	Credit
2021	Income from Investment in AssociateNo EntryInvestment in AssociateDividend PayableDividend ReceivableInvestments at FVTPLDividend RevenueCash
	Dividend PayableNo EntryDividend ReceivableInvestment in AssociateDividend RevenueIncome from Investment in AssociateCashInvestments at FVTPL
	(To record purchase of investment.)
2021	Investments at FVTPLCashDividend PayableInvestment in AssociateDividend RevenueIncome from Investment in AssociateNo EntryDividend Receivable
	Dividend ReceivableNo EntryCashInvestments at FVTPLDividend PayableInvestment in AssociateDividend RevenueIncome from Investment in Associate
	(To record dividend received from associate.)
2021	No EntryDividend ReceivableIncome from Investment in AssociateDividend PayableDividend RevenueInvestment in AssociateCashInvestments at FVTPL
	Dividend RevenueDividend ReceivableInvestments at FVTPLNo EntryInvestment in AssociateCashIncome from Investment in AssociateDividend Payable
	(To record investment income from associate.)

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(c)

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During 2022, Triple Titanium reports profit of $240,000 and pays total dividends of $62,000. Prepare the required journal entries related to these transactions on Wildhorses books. (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
2022	CashInvestments at FVTPLDividend ReceivableNo EntryDividend PayableIncome from Investment in AssociateLong-Term Investments-Image Fashion Common SharesShort-Term Investments-Image Fashion Common SharesDividend RevenueInvestment in Associate
	Dividend PayableDividend ReceivableInvestment in AssociateShort-Term Investments-Image Fashion Common SharesInvestments at FVTPLCashNo EntryIncome from Investment in AssociateLong-Term Investments-Image Fashion Common SharesDividend Revenue
	(To record dividend received from associate.)
2022	Dividend PayableInvestment in AssociateDividend RevenueCashShort-Term Investments-Image Fashion Common SharesInvestments at FVTPLIncome from Investment in AssociateLong-Term Investments-Image Fashion Common SharesNo EntryDividend Receivable
	Dividend ReceivableIncome from Investment in AssociateShort-Term Investments-Image Fashion Common SharesInvestment in AssociateInvestments at FVTPLLong-Term Investments-Image Fashion Common SharesNo EntryCashDividend RevenueDividend Payable
	(To record investment income from associate.)

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Attempts: 1 of 3 used

(d)

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Determine the balance in the investment account on December 31, 2021, and December 31, 2022.

		2021		2022
Ending balance		$		$