You have secured the following information for Companies A, B, and C concerning their internally generated net incomes (excluding subsidiary income) and dividends paid:

1. Assume Company A acquires an 80% interest in Company B on January 1, 2011, and Company B acquires a 60% interest in Company C on January 1, 2012. Prepare the simple equity method adjusting entries made by Companies A and B for subsidiary investments for the years 2011 through 2013.
2. Assume Company B acquires a 70% interest in Company C on January 1, 2011, and Company A acquires a 90% interest in Company B on January 1, 2013. Prepare the simple equity method adjusting entries made by Companies A and B for subsidiary investments for the years 2011 through 2013.

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2011 Internally generated net income . . . . . . $30,000 $20,000 $10,000 10,000 50,000 10,000 40,000 10,000 5,000 30,000 5,000 40,000 5,000 2012 Internally generated net income . . . . . Dividends declared and paid. 25,000 5,000 30,000 5,000 . . . .