Premama Inc. is a public company. On January 1, 2018 Premama Inc. purchased 10,000 common shares (15%) of Shamrock Inc. for $115,000 in cash. Shamrock had common shares of $225,000 and retained earnings of $475,000 on this date. Premama considered Shamrock a FVTPL investment; as it did not give Premama significant influence. On December 31, 2018 the Shamrock shares were trading at $14.50 per share. On January 1, 2019, Premama purchased an additional 25% of Shamrock's shares for $410,000 in cash. This second purchase allowed Premama to exert significant influence over Shamrock. The following information was available on the date of acquisition: Carrying Value Fair Value Assets not subject to depreciation $205,000 $205,000 Assets subject to depreciation (10 year useful life) 620,000 750,000 Tradename (7 year useful life) 21,000 Liabilities 115,000 115,000 Shamrock depreciates assets using the straight-line method and has a 35% tax rate. During the two years, Shamrock reported the following: 2018 2019 Net Income $250,000 $163,000 Dividends Declared $50,000 $112,000 Additional Information Shamrock pays any dividends declared in cash on January 1 of the subsequent year. On December 31, 2019, an impairment test revealed that Premama's share of Shamrock's goodwill was impaired by $10,000. The 2019 net income included a loss from discontinued operations of $38,000 (net of tax). REQUIRED: Prepare all of Premama's journal entries for 2018 and 2019 related to Premama's investment in Shamrock. Premama Inc. is a public company. On January 1, 2018 Premama Inc. purchased 10,000 common shares (15%) of Shamrock Inc. for $115,000 in cash. Shamrock had common shares of $225,000 and retained earnings of $475,000 on this date. Premama considered Shamrock a FVTPL investment; as it did not give Premama significant influence. On December 31, 2018 the Shamrock shares were trading at $14.50 per share. On January 1, 2019, Premama purchased an additional 25% of Shamrock's shares for $410,000 in cash. This second purchase allowed Premama to exert significant influence over Shamrock. The following information was available on the date of acquisition: Carrying Value Fair Value Assets not subject to depreciation $205,000 $205,000 Assets subject to depreciation (10 year useful life) 620,000 750,000 Tradename (7 year useful life) 21,000 Liabilities 115,000 115,000 Shamrock depreciates assets using the straight-line method and has a 35% tax rate. During the two years, Shamrock reported the following: 2018 2019 Net Income $250,000 $163,000 Dividends Declared $50,000 $112,000 Additional Information Shamrock pays any dividends declared in cash on January 1 of the subsequent year. On December 31, 2019, an impairment test revealed that Premama's share of Shamrock's goodwill was impaired by $10,000. The 2019 net income included a loss from discontinued operations of $38,000 (net of tax). REQUIRED: Prepare all of Premama's journal entries for 2018 and 2019 related to Premama's investment in Shamrock