Presented below are two independent situations:

1. Karen Cosmetics acquired \(10 \%\) of the 200,000 shares of common stock of Bell Fashion at a total cost of \(\$ 12\) per share on March 18, 1996. On June 30, Bell declared and paid a \(\$ 75,000\) dividend. On December 31, Bell reported net income of \(\$ 122,000\) for the year. At December 31, the market price of Bell Fashion was \(\$ 15\) per share. The stock is classified as available-for-sale.

2. Barb, Inc., obtained significant influence over Diner Corporation by buying \(30 \%\) of Diner's 30,000 outstanding shares of common stock at a total cost of \(\$ 9\) per share on January 1, 1996. On June 15, Diner declared and paid a cash dividend of \(\$ 35,000\). On December 31, Diner reported a net income of \(\$ 80,000\) for the year.

\section*{Instructions}

Prepare all the necessary journal entries for 1996 for

(a) Karen Cosmetics and

(b) Barb, Inc.