prepare martinezs journal entries for 2020 with equity method applied

m On January 3.2020. Martinez Corporation purchased 30% of the outstanding voting common stock of Paulson Company for $650,000. This purchase gave Martinez the ability to exercise significant influence over the operating and financial policies of Paulson On the date of purchase. Paulson's books reported assets of $2,300,000 and liabilities of $870.000. Any excess of cost over book value of Martinez s investment was attributed to a patent with a remaining useful life of nine years. During 2020. Paulson reported net income of $350.000 and declared and paid cash dividends of $70,000. In the following year, 2021. Paulson reported net income of $390,000 and declared and paid cash dividends of $112,000 In 2020, Martinez sold ventory costimg $70,000 to Paulson for $85.000 Paulson sold 80% of that inventory to outsiders during 2020 with the remainder being sold in 2021 During 2021 Martinez sold inventory costing $110,000 to Paulson for $130,000. Paulson sold 80% of that inventory to outsiders during 2021 Prepare all of Martinez's journal entries for 2020 to apply the equity method