Equity method entries. Weber Corporation acquired significant influence over Albee Computer Company on January 2 by purchasing 20% of its outstanding stock for $100 million. Weber Corporation attributes the entire excess of acquisition cost over the carrying value of Albee Computer Company's net assets to a patent, which it amortizes over 10 years. The shareholders' equity accounts of Albee Computer Company appeared as follows on January 2 and December 31 of the current year (amounts in millions):

Albee Computer Company had earnings of $100 million and declared dividends of $30 million during the year. The accounts receivable of Weber Corporation at December 31 included $600,000 due from Albee Computer Company. Weber Corporation accounts for its investment in Albee Computer company using the equity method. Give the journal entries to record the acquisition of the shares of Albee Computer Company and to apply the equity method during the ear on the books of WeberCorporation.

Dec. 31 Jan. 2 Common Stock .. $300 120 $300 190 Retained Earnings ..