Donald Corporation Purchased 3,000 Shares of the Outstanding Common Voting

Essay

Donald Corporation purchased 3,000 shares of the outstanding common voting stock of Apprentice Corporation on January 2, 2014, for $80 per share. At the date of purchase Apprentice Corporation had outstanding 10,000 shares of common stock with a par value of $50 per share. During 2014, Apprentice reported net income of $60,000 and declared and paid a $5,000 cash dividend. The December 31, 2014, fair value of Apprentice's stock was $84.
Required:
Prepare the journal entries required for Donald Corporation on January 2, 2014 and December 31, 2014.