Question $2$

On January $15,2024,$ Jackson Corporation acquired $30,000$ shares of Walker Industries for $$40$ each. This purchase represented $40\%$ of Walker's outstanding common stock, granting Jackson significant influence over Walker Industries. Jackson plans to keep this investment for the long$-$term. On August $15,2024,$ Walker Industries declared and paid dividends of $$2\mathrm{.}00$ per share. Walker's net income for the year ending December $31,2024,$ was $$600,000.$ By the end of the year, the market value of Walker Industries' stock was $$42$ per share.

Required:

a$)$ Prepare all necessary journal entries for Jackson related to this investment for the year $2024.$

b$)$ Calculate the carrying amount of the investment in Walker Industries reported by Jackson on its balance sheet as of $12/31/24.$

Sheet$1$

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$