Cardinal Company acquires an 80% interest in Huron Company common stock for $420,000 cash on January 1, 2015. At that time, Huron Company has the following balance sheet:

Appraisals indicate that accounts are fairly stated except for the equipment, which has a fair value of $240,000 and a remaining life of five years. Any remaining excess is goodwill.
Huron Company experiences the following changes in retained earnings during 2015 and 2016:

Prepare a determination and distribution of excess schedule for the investment in Huron Company (a value analysis is not needed). Prepare journal entries that Cardinal Company would make on its books to record income earned and/or dividends received on its investment in Huron Company during 2015 and 2016 under the following methods: simple equity, sophisticated equity, and cost.

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Assets Liabilities and Equity Current assets Land Equipment Accumulated depreciation 60,000 Accounts payable 00,000 Common stock ($5 par 50,000 Paid-in capital in excess of par 150,000 etoed earnings $ 60,000 50,000 100,000 150,000 360,000 Total assets 360,000 Retained earnings, January 1, 2015. $150,000 $50,000 O, Netincome, 2015 40,000 $190,000 Balance, December 31,2015 Netincome, 2016 Dividends paid in 2016. $ 45,000 1O,) 35,000 $225,000 Balance, December 31,2016