On January 1. Chloe Mikenzie Incorporated acquired 32% of the outstanding voting shares of Mannin Company at a cost of $2,196,000 by acquiring 72,000 of the company's total 225,000 outstanding shares at a cost of $30.50 per share. During the year, Mannin reponed $1,238,000 in net income and declared and paid $1.15 per share dividends. At the time of acquisition, the book value of Mannin's net assets equaled its market value.

Required

a. Prepare the journal entry required to record the acquisition of the investment in Mannin Company.

b. Prepare the journal entry required to record Chloe Mikenzie's share of the investee's net income.

c. Prepare the journal entry required to record the receipt of the cash dividends.

d. What is the carrying value of Chloe Mikcnzie's investment in Mannin Company at the end of the year?