On January 1,2008,Jolley Corp.paid $250,000 for 25% of the voting common stock of Tige Co.On that date,the book value of Tige was $850,000.A building with a carrying value of $160,000 was actually worth $220,000.The building had a remaining life of twenty years.Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years.
During 2008,Tige sold to Jolley inventory costing $60,000,at a markup of 50% on cost.At the end of the year,Jolley still owned some of these goods with a transfer price of $33,000.Jolly uses a perpetual inventory system.
Tige reported net income of $200,000 during 2008.This amount included an extraordinary gain of $35,000.Tige paid dividends totaling $40,000.
Required:
Prepare all of Jolley's journal entries for 2008 in relation to Tige Co. ,Assume the equity method is appropriate for use..

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The Answer of On January 1,2008,Jolley Corp.paid $250,000 for 25% of the voting common stock of Tige Co.On that date,the book value of Tige was $850,000.A building with a carrying value of $160,000 was actually worth $220,000.The building had a remaining life of twenty years.Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years.
During 2008,Tige sold to Jolley inventory costing $60,000,at a markup of 50% on cost.At the end of the year,Jolley still owned some of these goods with a transfer price of $33,000.Jolly uses a perpetual inventory system.
Tige reported net income of $200,000 during 2008.This amount included an extraordinary gain of $35,000.Tige paid dividends totaling $40,000.
Required:
Prepare all of Jolley's journal entries for 2008 in relation to Tige Co. ,Assume the equity method is appropriate for use..