Journal entries to apply the equity method of accounting for investments in securities. The following information summarizes data about the minority, active investments of Stebbins Corporation....

Journal entries to apply the equity method of accounting for investments in securities. The following information summarizes data about the minority, active investments of Stebbins Corporation. Carrying Value of Date Acquisition Ownership Identifiable Net Assets Security Acquired Cost Percentage on January 1, 2008 R . . . . . . . . . . 1/1/2008 $250,000 25% $800,000 S . . . . . . . . . . 1/1/2008 325,000 40 750,000 T . . . . . . . . . . 1/1/2008 475,000 50 950,000 Earnings (Loss) Dividends Security 2008 2009 2008 2009 R . . . . . . . . . . . . . . $ 200,000 $225,000 $125,000 $130,000 S . . . . . . . . . . . . . . 120,000 75,000 80,000 80,000 T . . . . . . . . . . . . . . (150,000) 50,000 — — Company R owns a building with 10 years of remaining life and with a fair value exceeding its carrying value by $160,000. $40,000 of this amount applies to the share Stebbins Corporation owns. Stebbins Corporation attributes the rest of any excess of acquisition cost over carrying value acquired to goodwill. The building has a 10-year remaining life. The fair values of the recorded net assets of Company S and Company T equal their carrying values. There are no goodwill impairments. a. Give the journal entries to record the acquisition of these investments and to apply the equity method during 2008 and 2009. b. Stebbins Corporation sells Security R on January 1, 2010, for $275,000. Give the journal entry to record the sale