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Equity Method Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $160,000...

Equity Method Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $160,000 on January 1, 2018, and obtained significant influence. The purchase price of the shares was equal to their book value. During 2018, the following information is available for Crowell:

Mar. 31 Declared and paid a cash dividend of $50,000.

June 30 Reported semiannual earnings of $120,000 for the first half of 2018

Sept. 30 Declared and paid a cash dividend of $50,000

Dec. 31 Reportedsemiannualearningsof$140,000forthesecondhalfof2018.

Required:

1. Prepare journal entries for Miller to reflect the preceding information.

2. What is the balance in Miller’s investment account on December 31, 2018? Show your computations.

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