Retroactive Recognition

Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the last several years. Data provided by Fast Track included the following 20X220X320X4 20X5 Net Income $40,000 $60,000 $40,000 $50,000 Dividends 20,000 20,000 10,000 20,000 Fast Track declares and pays its annual dividend on November 15 each year. Its net book value on January 1, 20X2, was $250,000. Idle purchased shares of Fast Track on three occasions: Percent of Ownership Amount Date Purchased Paid January 1, 20x2 10% $25,000 July 1, 20X3 15,000 January 1, 20x5 10 34,000 Required Give the journal entries to be recorded on Idle's books in 20x5 related to its investment in Fast Track