On January $1,2025,$ Hamer, Inc. decides to invest in $8,100$ shares of Thoroghbred stock when the stock is selling for $$10$ per share. On July $1,2025,$ Thoroghbred paid a $$1\mathrm{.}30$ per share cash dividend to stockholders. On December $31,2025,$ Thoroghbred reports net income of $$50,000$ for $2025.$ Assume Thoroghbred has $18,000$ shares of voting stock outstanding during $2025$ and Hamer, Inc. has significant influence over Thoroghbred.

Read the requirements

Requirement $1.$ Identify what type of investment the Thoroghbred stock is for Hamer, Inc..

Hamer, Inc.$\text{'}$s investment would be investment.

Requirement $2.$ Journalize the transactions related to Hamer, Inc.$\text{'}$s investment in the Thoroghbred stock during $2025.($Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select $"$No entry required" on the first line of the Accounts and Explanation column and leave the remaining fields blank.$)$

January $1$: Hamer, Inc. decides to invest in $8,100$ shares of Thoroghbred stock when the stock is selling for $$10$ per share.

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[$Jan$.1,,,],[,,,],[,,,],[,,,],[,,,]]$

July $1$: Thoroghbred paid a $$1\mathrm{.}30$ per share cash dividend to stockholders.

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[$Jul$.1,,,],[,,],[,,],[,,]]$