In Early January 2020, Janus Inc Additional Information:
1

In early January 2020, Janus Inc., a private enterprise that applies ASPE, purchased 40% of the common shares of Keqing Corp. for $ 484,000. Janus was now able to exercise considerable influence in decisions made by Keqing's management. Keqing Corp.'s statement of financial position reported the following information at the date of acquisition:
$$\begin{array} { | l | r | } \hline \text { Assets notsubject to being amortized } & \$ 242,000 \\\hline \text { Ascetssubject to amortization (10 years average life remaining } & 732,000 \\\hline \text { Liabilities } & 136,000 \\\hline\end{array}$$ Additional information:
1. Both the carrying amount and fair value are the same for assets that are not subject to amortization and for the liabilities.
2. The fair value of the assets subject to amortization is $ 885,000.
3. The company amortizes its capital assets on a straight-line basis.
4. Keqing reported net income of $ 192,000 and declared and paid dividends of $ 132,000 in 2020.
Instructions
a) Prepare the journal entry to record Janus's investment in Keqing Corp. Assume that any unexplained payment is goodwill.
b) Assuming Janus applies the equity method to account for its investment in Keqing, prepare the journal entries to record Janus' equity in the net income and the receipt of dividends from Keqing Corp. in 2020.
c) Assume the same factors as above and in part (b), except that Keqing's net income included a loss on discontinued operations of $ 45,000 (net of tax). Prepare the journal entries necessary to record Janus's equity in the net income of Keqing for 2020.