Equity Investment

Orbit Services.Inc. pays $700,000 to acquire 25% (200,000 shares of the voting stock of State Investments, Inc. on January 5. 2020. State Investments , Inc declares a pays a cash dividend of $1.40 per share on June 14, 2020.

At 12/31/20, State Investments, Inc. reports net income of $420,000.

Record the appropriate Journal Entries (if required) for the following transactions:

1) January 5, 2020 investment in State Investments , Inc. .

2) Receipt of the Cash Dividend on June 14, 2020.

3) State Investments , Inc. reports Net Income of $420,000 at 12/31/20.