Question $4$

On January $1,2018,$ your company acquires $10,000$ shares of Investee Business Limited $($IBL$),$ representing $40\%$ of the shares of IBL, for $$200,000.$ As part of that investment, your company is entitled to appoint one director to the four$-$member Board of Directors.

For the year ended December $31,2018,$ IBL earns $$400,000$ of profit $($net income$)$ and no other comprehensive income.

On January $2,2019,$ IBL declares and pays dividends of $$80,000$ to all shareholders.

REQUIRED

Prepare journal entries for the following dates:

$($a$)$ January $1,2018$;

$($b$)$ December $31,2018$; and

$($c$)$ January $2,2019.$