On the date of the business combination of Passman Corporation and Slago Company, the following working paper elimination was prepared (in journal entry format): 

PASSMAN CORPORATION AND SUBSIDIARY 

Working Paper Eliminatio

January 31, 2018 

Common Stock .................................................100,000 

Additional Paid-in Capital ................................200,000 

Retained Earnings .............................................300,000 

Inventories- (first-in, first-out cost) ..................50,000 

Plant Assets (net) ...............................................150,000 

Goodwill ................................................................40,000 

Investment in Slago Company ...........................840,000 

Additional Informatio

1. On January 31, 2018, the remaining economic life of Sago's plant assets was 10 years, and Slago includes straight-line depreciation in operating expenses. 

2. Goodwill was unimpaired on January 31, 2019. 

3. Slago declared and paid a dividend of $20,000 to Passman on January 31,2019. 

4. Slago had a net income of $90,000 for the fiscal year ended January 31, 2019. 

Instructions: 

Prepare journal entries for Passman Corporation to record the operating results of Slago Company for the year ended January 3, 2019, under the equity method of accounting. Omit explanations and disregard income taxes.