On January 1, 2014, LabTech Inc. purchased 40% of the common shares of UnderTech Company for $280,000.

Question:

On January 1, 2014, LabTech Inc. purchased 40% of the common shares of UnderTech Company for $280,000. During the year, UnderTech earned net income of $120,000 and paid dividends of $36,000.

Instructions
Prepare the entries for LabTech to record the purchase and any additional entries related to this investment in UnderTech Company in 2014.