SQ 8-7 On 1 July 2014, Xavier Lid acquired a 25% interest in Logan Lid for a cash consideration of $180 000. The share capital and reserves of Logan Lid at the date of acquisition are: Share capital $300 000 Retained carnings $385 000 Total shareholders' equity $685 000 Additional information: . For the year ending 30 June 2015, Logan Lid records an after-tax profit of $80 000. A dividend of $20,000 is declared on 30 June 2015 but is not paid until 31 August 2015. . For the year ending 30 June 2016, Logan Lid records an after-tax profit of $200 000. A dividend of $90,000 is declared on 15 June 2016 but remains unpaid as at 30 June 2016. . For the year ending 30 June 2017, Logan Ltd records a loss of $500 000 and no dividend is declared. . Xavier Lid has no subsidiaries and the tax rate is 30%. Required: (a) Prepare the journal entries required for Xavier Ltd to account for its associate for the year ending 30 June 2016 using the equity method