On January 2, Leonberger Company acquired 30% of the outstanding stock of ARO Company for $300,000. For

Question:

On January 2, Leonberger Company acquired 30% of the outstanding stock of ARO Company for $300,000. For the year ended December 31, ARO Company earned income of $60,000 and paid dividends of $15,000. Prepare the entries for Leonberger Company for the purchase of the stock, the share of ARO income, and the dividends received from ARO Company.