On January 2, Trey Company acquired 40% of the outstanding stock of Manning Company for $205,000. For

Question:

On January 2, Trey Company acquired 40% of the outstanding stock of Manning Company for $205,000. For the year ending December 31, Manning Company earned income of $48,000 and paid dividends of $14,000. Prepare the entries for Trey Company for the purchase of the stock, share of Manning income, and dividends received from Manning Company.