On July 1, 2021 Bentley Company paid $4,750,000 for 40% of Leroy Corporations 100,000 outstanding common shares. The book value of Leroys net assets equaled the market value at the time of the sale. Leroy paid out $600,000 in dividends to its shareholders in October of 2021 and $200,000 in 2022. At December 31, 2021 Leroys publicly traded stock closed at $125 per share. On December 31, 2022 the stock closed at $114 per share. Leroy Corporation reported net income of $900,000 for 2021 and $1,000,000 for 2022.

Bentleys journal entries

1. Purchase on July 1, 2021

2. Receipt of dividends in October, each year

2021	2022