E$16-7$B Presented below are two independent situations.

$1.$ Foley Cosmetics acquired $10\%$ of the $200,000$ shares of common stock of Tysen

Fashion at a total cost of $$14$ per share on March $18,2017.$ On June $30,$ Tysen declared

and paid a $$50,000$ dividend. On December $31,$ Tysen reported net income of $$122,000$

for the year. At December $31,$ the market price of Tysen Fashion was $$15$ per share. The

stock is classifi ed as available$-$for$-$sale.

$2.$ Zebb, Inc., obtained signifi cant infl uence over Menke Corporation by buying $25\%$ of

Menke$$s $30,000$ outstanding shares of common stock at a total cost of $$9$ per share on

January $1,2017.$ On June $15,$ Menke declared and paid a cash dividend of $$30,000.$ On

December $31,$ Menke reported a net income of $$80,000$ for the year.

Instructions

Prepare all the necessary journal entries for $2017$ for $($a$)$ Foley Cosmetics and $($b$)$ Zebb, Inc.