SR Company acquired 40 percent of the voting common shares of DKM, Inc., on January 1, 2001, for $120,000 cash. Income reported and cash dividends declared and paid by DKM in 2001 and 2002 were as follows:

		Income	Dividends
2001	$20,000			$12,000
2002	(5,000)			-0-

Give all the 2001 and 2002 entries, including the acquisition journal entry, as they would appear in the accounts of SR. Assume that significant influence exists.