On January 2, Peyroux Company acquired 35% of the outstanding stock of Gruden Company for $625,000. For the year ended December 31, Gruden Company earned income of $110,000 and paid dividends of...

On January 2, Peyroux Company acquired 35% of the outstanding stock of Gruden Company for $625,000. For the year ended December 31, Gruden Company earned income of $110,000 and paid dividends of $26,000. Prepare the entries for Peyroux Company for the purchase of the stock, the share of Gruden income, and the dividends received from Gruden Company.