Aurora Cosmetics Ltd. acquired 40% of Diner Corporation's 30,000 common shares for $16 per share on January 1, 2015. On June 15, Diner paid a cash dividend of $70,000 and Aurora received its share of the dividend on the same day. On December 31, Diner reported profit of $150,000 for the year. At December 31, Diner's shares were trading at $20 per share. Aurora accounts for this investment using the equity method.
Aurora Cosmetics also acquired 15% of the 200,000 common shares of Bell Fashion Ltd. for $28 per share on March 18, 2015. On June 30, Bell paid a $150,000 dividend. On December 31, Bell reported profit of $320,000 for the year. At December 31, Bell's shares were trading at $26 per share. Aurora intends to hold onto the Bell shares as a long-term investment for the dividend income. Aurora uses the fair value through profit or loss model for this investment.
Instructions
Record the above transactions for the year ended December 31, 2015?