On July 12, 2014, Rossow Corporation purchased 2,500 shares of Reimer Company for $45,000. The following information applies to the fair value of Reimer Company:

	Per Share
12/31/2014	$	24
12/31/2015		20
12/31/2016		15

Reimer Company declares and pays cash dividends of $4 per share on May 1 of each year.

1.

Record the purchase of 2,500 shares (23%) of Reimer Company for $45,000. The company will record the investment under the equity method of accounting.

2.

Record the entry to recognize earnings from Rossows investment in Reimer. Reimer reported net income of $27,000 in 2014.

3.

Record the receipt of cash dividends on May 1, 2015 of $4 per share.

4.

Record the entry to recognize earnings from Rossows investment in Reimer. Reimer reported net income of $27,000 in 2015.

5.

Record the receipt of cash dividends on May 1, 2016 of $4 per share.

6.

Record the entry to recognize earnings from Rossows investment in Reimer. Reimer reported net income of $27,000 in 2016.