On January 1, 2015, Aztec Company purchased 10,000 shares of the stock of Baker, Inc., and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $80,000, and represents a 30% ownership stake. Baker made $40,000 of net income in 2015, and paid dividends of $10,000. The price of Baker's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
Prepare the January 1 and December 31 general journal entries for Aztec Company.
How much should the Aztec Company report on the balance sheet for the investment in Aztec at the end of 2015?