On January 1, 2016, Tiger Company purchased 6,720 shares of Eagle Corporation's common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:
| Eagle Corporation |
| Balance Sheet |
| January 1, 2016 |
| 1 |
|
Book Value |
Fair Value |
| 2 |
Depreciable assets (remaining life, 8 years) |
$600,000.00 |
$620,000.00 |
| 3 |
Other non-depreciable assets |
290,000.00 |
300,000.00 |
| 4 |
Total |
$890,000.00 |
$920,000.00 |
| 5 |
Liabilities |
$300,000.00 |
$330,000.00 |
| 6 |
Shareholders' equity |
590,000.00 |
|
| 7 |
Total |
$890,000.00 |
|
During 2016, Eagle earned net income of $120,000 and paid total dividends of $48,000.
Required:
Prepare the journal entries of Tiger related to its share of Eagle's net income and dividends in 2016.