Question: 1 Please explain it 2. Please explain it Equity Method for Stock In On January 4, Year 1, Ferguson Company purchased 80,000 shares of Silva

Please explain it

Equity Method for Stock In On January 4, Year 1, Ferguson Company purchased 80,000 shares of Silva Company directly from one of the founders for a price of $49 per share. Silva has 250,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $196,000 in total dividends to its shareholders. On December 31, Year 1, Slva reported a net income of $747,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its t in Silva Company during Year 1 b. Previous Next Check My Work 2 more Chack My Work uees remaning

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