On January 1, 2017, Casey Company acquires a 30% interest in Key Company by purchasing

6,000 shares of its 20,000 common stock for $16 per share. On January 1, 2017, the net assets of Key

Company were as follows:

Book Value Fair Value

Nondepreciable assets $ 60,000 $ 60,000 Depreciable assets (5-year remaining life) 200,000 240,000 $260,000 $300,000

Liabilities $ 20,000 $ 20,000

During 2017, Key reported net income of $200,000 and paid cash dividends of $80,000.

Required: Prepare all journal entries on Casey's books to record the acquisition, dividends, and income from the investment in Key Company.