On January 1, 2020, Carla Corporation purchased 40% of the common shares of River Company for $371,000. During the year, River earned net income of $109,000 and paid dividends of $40,000. Prepare the entries for Carla to record the purchase and any additional entries related to this investment in River Company in 2020.

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: