tusity Method for Stock limentment On Januaty 4, Year 1, ferguson Compary purchased 64,000 shares of Stiva Conpamy directly from one of the founders for a price of $65 per share. 5 ilva has 200,000 stiares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid \$166,000 in total divndends to ts shareholders. On December J1, Year 1, Stiva reperted a net income of $58:8,000 for the year. Ferguson uses the equity method in accounting for its investment in sivo. a. Provide the fergusen Company journal entrivs for the transactions involving its imvestment in Siva Company during Year 1. Feesed: towati,tin b. Detormune the December 31. Year 1, balance of Imestiment in 5itva Company Stock