Excalibar Ltd. purchased 103,600 shares of Deerpark Ltd. on January 3, 2015, directly from one of the founders for $34 per share. Deerpark has 280,000 shares outstanding, including the Excalibar shares. On September 2, 2015, Deerpark paid $340,000 in total dividends to its shareholders. On December 31, 2015, Deerpark reported a net income of $842,000 for the year. Excalibar uses the equity method in accounting for its investment in Deerpark.
a. Provide the Excalibar Ltd. journal entries for the transactions involving its investment in Deerpark Ltd. during 2015.
b. Determine the December 31, 2015, balance of Investment in Deerpark Ltd. Shares.