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E17-17B (L03) (Equity Method) On January 1, 2017, LabTech Inc. purchased 40% of the common shares of UnderTech Company for $280,000. During the year, UnderTech
E17-17B (L03) (Equity Method) On January 1, 2017, LabTech Inc. purchased 40% of the common shares of UnderTech Company for $280,000. During the year, UnderTech earned net income of $120,000 and paid dividends of $36,000.
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Prepare the entries for LabTech to record the purchase and any additional entries related to this investment in UnderTech Company in 2017.
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