(1) gambino cosmetics acquired 10% of the 210,000 shares of common stock of nevins fashion at a total cost of $15 per share on march 18, 2017. on june 30, nevins declared and paid a $78,000 dividend. on december 31, nevins reported net income of $127,000 for the year. at december 31, the market price of nevins fashion was $17 per share. the stock is classified as available-for-sale.
(2) kanza, inc., obtained significant influence over rogan corporation by buying 40% of roganâs 24,000 outstanding shares of common stock at a total cost of $9 per share on january 1, 2017. on june 15, rogan declared and paid a cash dividend of $34,000. on december 31, rogan reported a net income of $77,000 for the year. prepare all the necessary journal entries for 2017 for (a) gambino cosmetics and (b) kanza, inc.