Journal entries under various methods of accounting for investments. Mulherin Corporation made three long-term investments on January 2. Data relating to these investments appear below.

Company Hanson .

Maloney .

Quinn . .

Percentage Acquired Book Value and Market Value of Net Assets on January 2 Acquisition Cost Net Income

(Loss) for the Year Dividends Declared during the Year Market Value on Shares Held on December 31 15%

30 100

$2,000,000 2,000,000 2,000,000 I 320,000 680,000 2,800,000

$200,000 500,000 600,000 I 40,000 180,000 310,000

$ 305,000 700,000 1,950,000 Assume that these were the only intercorporate investments of Mulherin Corporation. Maloney Company has a patent developed from its internal research efforts that has a market value exceeding book value of zero on January 2. Mulherin's 30 percent share of that excess is $80,000. The patent has a 10-year remaining life on this date. Any excess purchase price from the acquisition of Quinn Company relates to goodwill. The firm neither amortizes any goodwill nor finds it impaired.

Give the journal entries on Mulherin Corporation's books to record these acquisitions of common stock and to account for the intercorporate investments under GAAP. Mulherin Corporation accounts for its investment in Quinn Corporation using the equity method on its separate-company books.