. Oregon Company, a paper products manufacturer, wishes to enter the Canadian market. The company purchased 30 percent of the outstanding stock of Canadian Paper Inc. on January 1, Year One, for $6,000,000. The CEO of Oregon will sit on the board of directors of Canadian, and other evidence of significant influence does exist.

a. Canadian reported net income of $760,000 for the year. Record the journal entry (if any) to be

prepared by Oregon.

b. Canadian paid a cash dividend of $80,000. Record the journal entry for Oregon.

c. What amount would Oregon report on its balance sheet as its investment in Canadian as of the

end of Year One?