Change from Fair Value to Equity Method On January 3, 2009, Martin Company purchased for $500,000 cash a 10% interest in Renner Corp. On that date the net assets of Renner had a book value of $3,700,000. The excess of cost over the underlying equity in net assets is attributable to undervalued depreciable assets having a remaining life of 10 years from the date of Martin’s purchase. The fair value of Martin’s investment in Renner securities is as follows: December 31, 2009, $560,000, and December 31, 2010, $515,000. On January 2, 2011, Martin purchased an additional 30% of Renner’s stock for $1,545,000 cash when the book value of Renner’s net assets was $4,150,000. The excess was attributable to depreciable assets having a remaining life of 8 years. During 2009, 2010, and 2011 the following occurred. 

                          Renner                  Dividends Paid by

                        Net Income            Renner to Martin

2009                $350,000                       $15,000

2010                  450,000                         20,000

2011                  550,000                         70,000

On the books of Martin Company prepare all journal entries in 2009, 2010, and 2011 that relate to its investment in Renner Corp., reflecting the data above and a change from the fair value method to the equity method.