On January $1,2022,$ Pierce Company purchased $80\%$ of the common stock of Stanley Company for $$600,000.$ At that time, Stanley$$s stockholders$$ equity consisted of the following:

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Common stock$$ $$220,000$

Other contributed capital$90,000$

Retained earnings$320,000$

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During $2022,$ Stanley distributed a dividend in the amount of $$120,000$ and at year$-$end reported a $$320,000$ net income. Any difference between implied and book value relates to subsidiary goodwill. Pierce Company uses the equity method to record its investment. No impairment of goodwill is observed in the first year.

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Required:

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A$.$ Prepare on Pierce Company$$s books journal entries to record the investment related activities for $2022.$

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B$.$ Prepare the workpaper eliminating entries for a workpaper on December $31,2022.$