Roller Corporation purchased 100 percent ownership of Steam Company on January 1, 20X5, for $284,000. On that date, the book value of Steam's reported net assets was $206,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 10 years. Net income and dividend payments of Steam in the following periods were
Year Net Income Dividend
20X5 $24,000 $6,000
20X6 44,000 16,000
20X7 24,000 43,000
Prepare journal entries on Roller Corporation's books relating to its investment in Steam Company for each of the three years, assuming it accounts for the investment using the equity-method. Record the purchase of Steam Company stock for 20X5, record the dividend from Steam Company for 20X5, record the equity-method income for 20X5, record the amortization of differential value for 20X5, record the dividend from Steam Company for 20X6, record the equity-method income for 20X6, record the amortization value for 20X6, record the dividend from Steam Company for 20X7, record the equity-method income for 20X7, and record the amortization value for 20X7.