E$16\mathrm{.}11($LO $4)$ AP Visage Cosmetics, a public company, acquires $40\%$ of Image Fashion Inc.$\text{'}$s $30,000$ common shares for $$18$ per

share on January $2,2024.$ On June $15,$ Image Fashion pays a cash dividend of $$30,0$oo$.$ On December $31,$ Image Fashion reports profit

of $$380,000$ for the year. At December $31,$ Image Fashion shares are trading at $$22$ per share.

Instructions

a$.$ Prepare the required journal entries to record the Image Fashion Inc. investment assuming significant influence exists.

b$.$ Determine the balance in the investment account on December $31,2024,$ Visage Cosmetics' year end.