PROBLEM 8-2 Workpaper-Sale of Shares by Parent, Cost Method-Loss of Control The accounts of Pyle Company and its subsidiary, Stern Company, are summarized below as of December 31, 2019: Debits Pyle Stern Current Assets $600,000 $320.000 Investment in Stern Company 480,000 Other Assets 1,180,000 668,000 Dividends Declared, 11/1 80,000 60.000 $2.340,000 $1.048.000 Credits Liabilities $190,000 $ 90,000 Common Stock, 55 par 500,000 300,000 Other Contributed Capital 230,000 180.000 1/1 Retained Earnings 1,200,000 292.000 Net Income 220,000 186.000 $2,340.000 $1.048.000 Pyle Company made the following open-market purchase and sale of Stern Company common stock: January 2, 2017, purchased 51,000 shares (85% of Stern), cost $510,000, $10/share. January 1, 2019, sold 40,000 shares (two-thirds of Stern), proceeds, $480,000, S12/share. The book value of Stern Company's net assets on January 2, 2017, $600,000, approximated the fair value of those net assets, including retained earnings of $120,000. Subsequent changes in book value of the net assets are entirely attributable to earnings of Stern Company. Stem Company ears its income evenly throughout the year. Required: Prepare the journal entries needed on Pyle Company's books to record the transactions regarding the investment in Stern Company account assuming that the cost method is used to account for the investment