On January 1, 2016, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $232,500 cash. On that date, Short's book value and fair value were both $930,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2016, was $89,000. During 2016, Short also paid cash dividends in the amount of $28,500. Prepare journal entries necessary to record the above information on American Corporations books during 2016 including the original purchase