The following are two independent situations.

Situation 1 Whoo Cosmetics acquired 12% of the 200,000 shares of common stock of Loreal Fashion at a total cost of $15per share on Oct.18, 2018. On Oct.30, Loreal declared and paid $60,000 cash dividend to all stockholders. On December 31, Loreal reported net income of $122,000 for the year. At December 31, the market price of Loreal Fashion was $12 per share.

Situation 2 Peach Republic Group obtained significant influence over Old Army Corporation by buying 35% of Old Armys 40,000 outstanding shares of common stock at a total cost of $16 per share on January 1, 2018. On June 15, Old Army declared and paid cash dividends of $58,000. On December 31, Old Army reported a net income of $100,000 for the year.

Prepare all the necessary journal entries in 2018 for Whoo Cosmetics and Peach Republic Group. Show all calculations