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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 Y Ferguson Company purchased shares of Silva Companys common stock directly from one of the founders for a price of $ per share. Silva has shares outstanding, including the Daniels shares. On July Y Silva paid $ in total dividends to its shareholders. On December Y Silva reported a net income of $ 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 Y 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 Y balance of the investment in Silva Company stock account.
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