On January 1, 2014, The Timber Company acquired a 12% interest in the Twig Corporation through the purchase of 72,000 shares of Twigs common stock, paying $422,000. During 2014, Twig paid $28,000 in total dividends and reported net income of $95,675. The market price of Twigs common stock was $5.44 per share on December 31, 2014.
Journalize the following:
A. Timbers stock acquisition
B. Timbers realized income for 2104
C. Entry or entries to adjust the investment account to its appropriate 12/31/14 balance.