|Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the last several years. Fast Track provided data including the following:|
|Fast Track declares and pays its annual dividend on November 15 each year. Its net book value on January 1, 20X2, was $253,000. Idle purchased shares of Fast Track on three occasions:|
|Date||Percent of Ownership
|January 1, 20X2||10||%||$||25,300|
|July 1, 20X3||5||17,710|
|January 1, 20X5||14||70,840|
|Prepare the journal entries to be recorded on Idle’s books in 20X5 related to its investment in Fast Track. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)|
|Record purchase of Fast Track stock.
Record the pick-up of the difference between cost and equity income.
Record dividend from Fast Track Enterprises.
Record equity-method income.