Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $375,000. At the time of purchase, Song Companys total stockholders equity amounted to $460,700. Income and dividend distributions for Song Company from 2014 through 2016 are as follows:

		2014		2015		2016
Net Income (loss)		$66,400		$53,500		($54,900	)
Dividend distribution		26,100		49,600		35,700

Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to account for its investment in Song Company under each of the following assumptions:

	Your answer is partially correct. Try again.

Percy Company uses the complete equity method to record its investment. The difference between book value of equity acquired and the value implied by the purchase price was attributed solely to an excess of market over book values of depreciable assets, with a remaining life of 10 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2014
	(To record the investment in Song Company)
	(To record equity income (loss))
	(To record amortization)
	(To record dividend income)
2015
	(To record equity income (loss))
	(To record amortization)
	(To record dividend income)
2016
	(To record equity income (loss))
	(To record amortization)
	(To record dividend income)