Situation $1$:

Buffalo Cosmetics acquired $10\%$ of the $196,000$ shares of common stock of Martinez Fashion at a total cost of $$12$ per share on March

$18,2025.$ On June $30,$ Martinez declared and paid $$69,400$ cash dividends to all stockholders. On December $31,$ Martinez reported

net income of $$116,600$ for the year. At December $31,$ the market price of Martinez Fashion was $$13$ per share.

Situation $2$:

Carla, Inc. obtained significant influence over Seles Corporation by buying $30\%$ of Seles's $31,000$ outstanding shares of common stock

at a total cost of $$8$ per share on January $1,2025.$ On June $15,$ Seles declared and paid cash dividends of $$38,400$ to all stockholders.

On December $31,$ Seles reported a net income of $$92,500$ for the year.

Prepare all necessary journal entries in $2025$ for both situations. $($List all debit entries before credit entries. 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

$0$ for the amounts. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

tion $1$: Buffalo Cosmetics

Equity Investments

$235200$

Cash

Cash

Dividend Revenue

Fair Value Adjustment

Unrealized Holding Gain or Loss $-$ Income