As a long-term investment, QWERTY Equipment Company purchased 25% of ABC Supplies Inc.'s 560,000 shares for $640,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of ABCs net assets were the same. During the year, ABC earned net income of $360,000 and distributed cash dividends of $0.25 per share. At year-end, the fair value of the shares is $681,000.

Directions: Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.