Savan Co.purchased 14,000 shares of Briton Corporation's 40,000 shares of common stock on January 1.This represented 35% of Briton's outstanding shares and gave Savan Co.significant influence over Briton's management and operations.On October 11,Briton declared and paid cash dividends of $30,000.On December 31,Briton reported net income of $125,000 for the year.Prepare the journal entries Savan Co.should record to account for the dividends received and the earnings reported by Briton Corporation.

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The Answer of Savan Co.purchased 14,000 shares of Briton Corporation's 40,000 shares of common stock on January 1.This represented 35% of Briton's outstanding shares and gave Savan Co.significant influence over Briton's management and operations.On October 11,Briton declared and paid cash dividends of $30,000.On December 31,Briton reported net income of $125,000 for the year.Prepare the journal entries Savan Co.should record to account for the dividends received and the earnings reported by Briton Corporation.

Savan CoPurchased 14,000 Shares of Briton Corporation's 40,000 Shares of Common