Question: On June 1 2017 Wostok Corp Wostok pur chased 1 000 000

On June 1, 2017, Wostok Corp. (Wostok) pur chased 1,000,000 common shares of Griffin Ltd. (Griffin) for $2,000,000. The investment represents a 40 percent interest in Griffin and gives Wostok significant influence. During fiscal 2018, Wostok's share of Griffin's net income was $440,000. Also, Griffin paid divi dends during the year of $0.50 per share. Both companies have May 31 year-ends.

a. Prepare Wostok's journal entry to record its investment in Griffin.
b. How much would Wostok report on its May 31, 2018 income statement from this investment?
c. What amount would be reported on Wostok's May 31, 2018 balance sheet for its investment in Griffin?

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