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Accounting

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[The following information applies to the questions displayed below.] As a long-term investment, Fair Company purchased 20% of Midlin Companys 200,000 shares for $240,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $125,000 and distributed cash dividends of $0.30 per share. At year-end, the fair value of the shares is $250,000.

Required:

1. Assume no significant influence was acquired. Record the transactions from the purchase through the end of the year, including any adjustment for the investments fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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