On January 3, Bennies Bonsai Farm purchased 20% of the outstanding stock of Eva's Cactus Company for $85,000. During the year, Eva's Cactus paid cash dividends totaling $70,000 and reported net income for the year of $90,000.
Record all the transactions necessary for Bennies Bonsai for this stock purchase assuming:
A.) The purchase does not give Bennies significant influence over Eva's Cactus
B.) The purchase does give Bennies significant influence over Eva's Cactus