Problem #$2$

Markle & Co$.$ obtained significant influence over Wall & Co$.$ by buying $25\%$ of Wall's $100,000$

outstanding shares of common stock at a cost of $$22$ per share, on January $1,2020.$ On July $15$th$,2020,$

Wall declared and paid a cash dividend of $$200,000.$ On December $31,2020,$ Wall

reported a net profit of $$400,000$ for the year.

Prepare all necessary journal entries for $2020$ for Markle & Co$.$