On January $2,$ Todd Company acquired $40\%$ of the outstanding stock of McGuire Company for $$205,000.$ For the year ending December $31,$ McGuire earned income ofRamiro Company purchased $40\%$ of the outstanding stock of Marco Company on January $1.$ Marco reported net income of

$$70,300$ and declared dividends of $$19,300$ during the year. How much would Ramiro adjust its investment in Marco Company

under the equity method?

of $

$$48,000$ and paid dividends of $$14,000.$

Required:

Journalize the entries for Todd Company for the purchase of the stock, share of McGuire Company income, and dividends received from McGuire Company. If an amount box

does not require an entry, leave it blank.

Jan. $2$

Dec. $31$

Dec. $31$