Question 8 - (Chapter 9) On January 2, 2023, Tom Company invested $4,150,000 in Jerry Ltd. for 40% of its outstanding common shares. At this time, the book value (equity) of Jerry Ltd. was $8,400,000. Jerry pays out 25% of its net income in dividends each year. Tom elects two of five members of Jerry's board of directors. During 2023, Tom received a cash dividend of $250,000 from Jerry Ltd. Instructions a. Record the initial purchase of the Jerry Ltd. shares by Tom Company in 2023. b. Calculate Jerry's Ltd. net income for 2023. c. Record the additional 2023 journal entries related to this investment on Tom's books