Journal entries to apply the equity method of accounting for investments in securities

17.   Journal entries to apply the equity method of accounting for investments in securities. Wood Corporation made three long-term intercorporate investments on January 2. Data relating to these investments for the year appear next.

 

		Carrying
		Value and
		Fair Value of		Net	Dividends
		Identifiable		Income	Declared
	Percentage	Net Assets	Acquisition	(Loss) for	During
Company	Acquired	on January 2	Cost	the Year	the Year
Knox Corporation . . . . . .	50%	$700,000	$350,000	$ 70,000	$30,000
Vachi Corporation . . . . . .	30	520,000	196,000	40,000	15,000
Snow Corporation . . . . . .	20	400,000	100,000	(24,000)	—

 

Give the journal entries to record the acquisition of these investments and to apply the equity method during the year. There are no goodwill   impairments.