On January 4, Year 1, Ferguson Company purchased 160,000 shares of Silva Company directly from one of the founders for a price of $42 per share. Sil shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $432,000 in total dividends to its shareholders. On December 31 , Year 1 , net income of $1,438,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Feedosck Freck My Work a. Jan 4: Record the investment at cost. b. Determine the December 31, Year 1, balance of investment in Silya Company 5 tock. On January 4, Year 1, Ferguson Company purchased 160,000 shares of Silva Company directly from one of the founders for a price of $42 per share. Sil shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $432,000 in total dividends to its shareholders. On December 31 , Year 1 , net income of $1,438,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Feedosck Freck My Work a. Jan 4: Record the investment at cost. b. Determine the December 31, Year 1, balance of investment in Silya Company 5 tock