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Sage Co. acquired 25% of the 540,000 shares of outstanding common stock of Overload Inc. on December 31, 2020. The purchase price was $4,023,000. Overload
Sage Co. acquired 25% of the 540,000 shares of outstanding common stock of Overload Inc. on December 31, 2020. The purchase price was $4,023,000. Overload declared and paid \$1.20 per share cash dividends on June 18, 2021, and on November 29,2021 . Overload reported net income of $1,160,000 for 2021 . The fair value of Overload common stock was $27 per share at December 31 , 2021. Prepare the journal entries for Sage Co. for 2021, assuming that Sage cannot exercise significant influence over Over load. The securities should be classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not) indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
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