On January 1, 2017, Sunshine Ltd. acquired 30% of the outstanding ordinary shares of Moonbeam Inc. for $270,000 and now has significant influence over the investee. The fair value of Moonbeam€™s net identifiable assets at acquisition date was $900,000. Pertinent information follows:

Required:
a. Prepare Sunshine Ltd.€™s journal entries related to its investment in Moonbeam Inc. for the years ending December 31, 2017, and December 31, 2018, including the journal entry to record the acquisition.
b. Determine the balance in the investment account as at December 31, 2018.

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Year ended Dec. 31, 2017 Moonbeam Inc. Net income Dividends declared and paid Market value of investment Year ended Dec. 31, 2018 ($ 80,000) $300,000 50,000 370,000 30,000 320,000