Man Corporation purchased a 40 percent interest in Nib Corporation for $1,000,000 on January 1, at book value, when Nibs’s assets and liabilities were recorded at their fair values. During the year, Nib reported net income of $600,000 as follows (in thousands):
Income from continuing operations $700
Less: Loss from discontinued operations 100
Net income $600
REQUIRED: Prepare the journal entry on Man’s books to recognize income from the investment in Nib for the year.