On January 1 Ranier Corporation purchased a \(25 \%\) equity in Bellingham Corporation for \(\$ 150,000\). At December 31 Bellingham declared and paid a \(\$ 60,000\) cash dividend and reported net income of \(\$ 200,000\).

\section*{Instructions}

(a) Journalize the transactions.

(b) Determine the amount to be reported as an investment in Bellingham stock at December 31 .