On January $1,2x2,$ a parent purchases all of the stock of its subsidiary for $$20,000.$ The subsidiary reports Stockholders' Equity of $$16,000$ on the date of purchase.

The parent assigns the $$4,000$ excess purchase price to an undervalued building owned by the subsidiary. The building has a $20-$year remaining life. All other net

assets of the subsidiary have fair values approximating their recorded pre$-$acquisition carrying values. Subsequent to the acquisition, the subsidiary reports $$2,000$

of net income and pays dividends of $$1,200$ during the year ended December $31,2$ XX$2.$

Provide the following journal entries:

a$.$ Record the initial investment at January $1,22.$

b$.$ Record the recognition of Equity Income by the parent for the year ended December $31,2$ XX$2.$

c$.$ Record the receipt of the dividend during $2$XX$2.$