Turner Corporation reported the following balances at January 1, 20X9:On January 1, 20X9, Gross Corporation purchased 100 percent of Turner’s stock. All tangible assets had a remaining economic life of 10 years at January 1, 20X9. Both companies use the FIFO inventory method. Turner reported net income of $16,000 in 20X9 and paid dividends of $3,200. Gross uses the equity method in accounting for its investment in Turner.RequiredGive all journal entries that Gross recorded during 20X9 with respect to its investment assuming Gross paid $437,500 for the ownership of Turner on January 1, 20X9. The amount of the differential assigned to goodwill is notimpaired.
Turner Corporation reported the following balances at January 1 20X9