On January 1, 2007 the Field Company acquired 40% of the North Company by purchasing 8,000 shares for $144,000 and obtained significant influence. On the date of acquisition, Field calculated that its share of the excess of the fair value over the book value of North’s depreciable assets was $15,000, and that the purchased goodwill was $12,000. At the end of 2007, North reported net income of $45,000 and paid dividends of $0.70 per share. Field Company depreciates its depreciable assets over a 12-year remaining life.

Required

Prepare all the journal entries of Field Company to record the preceding information for 2007.