TWO: marks) (B1, C2) On Jomary 2, 2000, Pewter Corporation made the following investments 1- Acquired for cash 80% of the 1000 shares of outstanding common stock of Stewart Companys 570 a share. The stockholder's equity of Stewart on January 2,2020, consisted of the following: Con stock, na parceled valne 550.000 Retained earrings $20,000 Total stockholder's equity 570,000 2- Acquired for cash 70% of the 3,000 shares of outstanding Cartoon stock af Skate Company at $40 a share. The stockholder's equity of Skate on January 2, 2020. consisted of the following Common stock, $20 par Additional paid in capital Retained earnings Total stockholder's equity 360,000 $ 20,000 $ 40,000 $ 120,000 Out-of-pocket costs of the two business combinations may be disregarded An analysis of the retained earnings of each company for year 2020 follows: Pewter Stewart Saate corporation company company Balances beginning of year 3240,000 $20.000 $ 40,000 Net income (1089) 104,600 36,000 (12,000) Cash dividends declared (40,000) (16,000) (9.000) and paid, Dec 31, 2020. Balance end of year 304,600 40.000 19,000 Instructions Prepare journal entries for Pewter Corporation to record the following for year 2020: 1. Investment in subsidiaries common stock. 2. Parent company's share of subsidiaries net income or net loss (disregarding income taxes) under the equity method of accounting 3. Parent company's share of subsidiaries dividends declared under the equity method of accounting (do not prepare journal entries for receipt of cash)