On January $4,2023,$ Nelson Corporation purchased $35\%$ of the

outstanding voting common stock of Christopher Company for

$$560,000.$ This purchase gave Nelson the ability to exercise

significant influence over the operating and financial policies of

Christopher. On the date of purchase, Christopher's books

reported assets of $$2,000,000$ and liabilities of $$600,000.$ Any

excess of cost over book value of Nelson's investment was

attributed to a patent with a remaining useful life of ten years.

During $2023,$ Christopher reported net income of $$250,000$ and

declared and paid cash dividends of $$55,000.$

In $2023,$ Nelson sold inventory costing $$60,000$ to Christopher

for $$80,000.$ Christopher sold $75\%$ of that inventory to outsiders

during $2023$ with the remainder being sold in $2024.$

Prepare all of Nelson's journal entries for $2023$ to apply the

equity method.

Journal entries to prepare:

Record original purchase of the $35\%$

Accrue the earnings for the year

Record dividend declaration

Record collect of dividend payment

Record amortization of excess payment

Record the deferral of the gross profit on inventory sale