Refer to P 2A-1. All facts pertaining to the period until December 31, 20X4, remain the same as in P 2A-1 . Now assume that on January 3, 20X5, Take Inc. purchased 10,000 additional shares in Give Inc. The 40% shareholding in Give Inc. gave Take Inc. significant influence over the former on that date. Assume that no purchase price discrepancy/fair value adjustment is necessary. Each share of Give Inc. had a fair value of $4.80 on that date. Give€™s net income for 20X5 was $120,000, and it declared and paid $80,000 as dividends that year. Show the journal entries that Take Inc. has to make in relation to its investment in Give Inc. in 20X5.

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Share Price on December 31 $4.80 Dividends Declared Year Income 20X1 $160,000 $140,000 110,000 100,000 20X2 80,000 120,000 4.50 5.00 20X3 4.70 20X4 60,000 80,000