E4-8 Differential Assigned toLandand Equipment LO 4-1Rod Corporation purchased 1

E4-8 Differential Assigned toLandand Equipment LO 4-1Rod Corporation purchased 100 percent ownership of Stafford Corporation on January 1 20X4 for $65000 which was $10000 above the underlyingbook value. Half the additional amount was attributable to an increase in the value of land held by Stafford and half was due to an increase in the value of equipment. The equipment had a remainingeconomic lifeof five years on January 1 20X4. During 20X4 Stafford reportednet incomeof $12000 and paid dividends of $4500.Required:Prepare thejournal entriesthat Rod Corporation recorded during 20X4 related to its investment in Stafford Corporation assuming Rod uses theequity methodin accounting for its investment.need journal entries for the following:Record purchase of Stafford Stock.Record dividend from Stafford.Record equity-method income.Record amortization differential assigned to equipment.