Slater Company purchased 30% of the outstanding voting shares of Rogan Company for $ 1,500,000 in cash on January 1, 20X3. On that date, Rogan Company’s shareholders’ equity was made up of common...

Slater Company purchased 30% of the outstanding voting shares of Rogan Company for $ 1,500,000 in cash on January 1, 20X3. On that date, Rogan Company’s shareholders’ equity was made up of common shares of $ 3 million and retained earnings of $ 1 million. There were no differences between the carrying values and the fair values of any of its net identifiable assets or liabilities. The net income and dividends declared and paid by Rogan Company for the two years subsequent to its acquisition were as follows:The statements of comprehensive income for the year ended December 31, 20X5, prior to the recognition of any investment income, for Slater and Rogan Companies are as follows:During 20X5, Slater Company declared and paid dividends of $ 120,000, while Rogan Company declared and paid dividends of $ 80,000. Rogan Company declares and pays its dividends on December 31 of each year.Required1. Assume that Slater can exercise significant influence over the affairs of Rogan. Provide the following:a) The SCI of Slater Company, including recognition of any investment income or loss, for the year ended December 31, 20X5.b) The balance in the investment in Rogan Company account as it would appear on the December 31, 20X5, statement of financial position of Slater Company. Assume no impairment in the value of goodwill.2. Assume that Slater cannot exercise significant influence over the affairs of Rogan. Provide the journal entry of Slater Company related to its investment in Rogan Company for20X5.

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Slater Company purchased 30 of the outstanding voting shares of