Sunland Company acquired 30% of the outstanding common stock of Grinwold Inc. on January 1, 2022, by paying $2,610,000 for 87,000 shares. Grinwold declared and paid a $1 per share cash dividend on June 30 and again on December 31, 2022. Grinwold reported net income of $1,160,000 for the year.

(a)

Prepare the journal entries for Sunland Company for 2022, assuming Sunland cannot exercise significant influence over Grinwold. (Use the cost method.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit