On July 1, 20X4, Pillow Corp. obtained significant influence over Sleep Co. through the purchase of

3,000 shares of Sleep's 10,000 outstanding shares of common stock for $20 per share. On December 15, 20X4, Sleep paid $40,000 in dividends to its common stockholders. Sleep's net income for the year ended December 31, 20X4, was $120,000, earned evenly throughout the year.

Required: From the parent perspective

1-Prepare the journal entry to record the acquisition.

2-Prepare the journal to record the dividends received from sleep.

3-Prepare the journal entry to record the income reported by sleep