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Sheffield Corporation purchased a 4 0 % interest in Moss Inc. for $ 2 7 0 . This investment gave Sheffield significant influence over Moss.

Sheffield Corporation purchased a 40% interest in Moss Inc. for $270. This investment gave Sheffield significant influence over Moss. During the year, Moss earned net income of $15 and paid dividends of $5. Assuming the purchase price was equal to 40% of Mosss net carrying amount when it was acquired.

Prepare Sheffields journal entries related to this investment using the equity method. 

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