Question: On January 1 , 2 0 2 5 , Vaughn Corporation purchased 2 0 % of the common shares of Bramble Company for $ 1

On January

1, 2025,

Vaughn Corporation purchased

20 %

of the common shares of Bramble Company for $

196, 000 .

During the year, Bramble earned net income of $

77, 000

and paid dividends of $

19, 250 .

Prepare the entries for Vaughn to record the purchase and any additional entries related to this investment in Bramble Company in

2025 . (

List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select

"

No Entry" for the account titles and enter

0

for the amounts.

)

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