Q1. Roth Corporation used the equity method to report the following transactions for the years 2016 and 2017:

Feb 2, 2016 - Purchased 35% of the voting common shares of Dunn Enterprises Inc. for $500,000. This is a long-term investment giving Roth Corporation significant influence over the operations of Dunn Enterprises Inc.

Oct. 15- Received $20,000 cash dividends on Dunn Enterprises Inc. common shares.

Dec. 31Dunn Enterprises Inc. reported total income of $190,000 for the year ended December 31, 2016.

2017

Jun. 30 Dunn Enterprises Inc. reported total income of $40,000 for the six months ended June 30,2017.

30Sold one-half of the Dunn Enterprises Inc. shares for $275,000.

Prepare journal entries to record the above transactions and show Investments in Balance Sheet as on 31.12.17 if Fair value of Investments on that day was $300,000