Visage Cosmetics, a public company, acquires 40% of Kingbird Inc.s 26,300 common shares for $19 per share on January 2, 2021. On June 15, Kingbird pays a cash dividend of $26,300. On December 31, Kingbird reports profit of $382,000 for the year. At December 31, Kingbird shares are trading at $22 per share.

1.Prepare the required journal entries to record the Kingbird Inc. investment assuming significant influence exists. 2. Determine the balance in the investment account on December 31, 2021, Visage Cosmetics year end.