quity Method

On January 2, Yorkshire Company acquired 36% of the outstanding stock of Fain Company for $300,000. For the year ended December 31, Fain Company earned income of $78,000 and paid dividends of $24,000.

Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.

Jan. 2 - Purchase
Dec. 31 - Income
Dec. 31 - Dividends