The stockholders’ equity of Tal Corporation at December 31, 2011, was $380,000, consisting of the following (in thousands):

Capital stock, $10 par (24,000 shares outstanding)           $240

Additional paid-in capital                                                            60

Retained earnings                                                                        80

Total stockholders’ equity                                                      $380

On January 1, 2012, Tal Corporation, which was in a tight working capital position, sold 12,000 shares of previously unissued stock to Riv Corporation for $250,000. All of Tal’s identifiable assets and liabilities were recorded at fair values on this date except for a building with a 10-year remaining useful life that was undervalued by $60,000. During 2012, Tal Corporation reported net income of $120,000 and paid dividends of $90,000.

REQUIRED: 

Prepare all journal entries necessary for Riv Corporation to account for its investment in Tal for 2012.