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Presented below are two independent situations: (a) Crane Inc. acquired 10% of the 423,000...

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Accounting

Presented below are two independent situations:
(a) Crane Inc. acquired 10% of the 423,000 shares of common stock of Shamrock Corporation at a total cost of $15 per share onjune 17,2025. On September 3, Shamrock declared and paid a $123,000 dividend. On December 31, Shamrock reported net income of $523,000 for the year.
(b) Novak Corporation obtained significant influence over Sheridan Company by buying 30% of Sheridan's 123,000 outstanding shares of common stock at a cost of $17 per share on January 1,2025. On May 15, Sheridan declared and paid a cash dividend of $123,000. On December 31, Sheridan reported net income of $223,000 for the year.
Prepare all necessary journal entries for 2025 for (a) Crane and (b) Novak. (List all debit entries before credit entries. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record entries in the order presented in the problem.)
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