Current Attempt in Progress

Martinez Corporation purchased for $$280,000$ a $30\%$ interest in Murphy, Inc. This investment enables Martinez to exert significant influence over Murphy. During the year, Murphy earned net income of $$171,000$ and paid dividends of $$59,000.$

Prepare Martinez's journal entries related to this investment. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record the purchase.$)$

$($To record the net income.$)$