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

Wood Corporation made three long term intercorporate investments on January 2. Data relating to these investments for the year appear next.

Company

Percentage Acquired

Carrying Value and
Fair Value of Identifiable Net Assets on January 2

Acquisition Cost

Net Income (Loss) for the Year

Dividends
Declared
During
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.