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On January 4 , 2 0 Y 4 , Ferguson Company purchased 1 6 4 , 0 0 0 shares of Silva Company s common

On January 4,20Y4, Ferguson Company purchased 164,000 shares of Silva Companys common stock directly from one of the founders for a price of $33 per share. Silva has 410,000 shares outstanding, including the Daniels shares. On July 2,20Y4, Silva paid $630,000 in total dividends to its shareholders. On December 31,20Y4, Silva reported a net income of $1,101,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva.
Required:
a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 20Y4. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar.
b. Determine the December 31,20Y4, balance of the investment in Silva Company stock account.

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