On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $287,900 cash. The following balance sheet shows Sulfurst Inc.s book values immediately prior to acquisition, as well as the appraised values of its assets and liabilities by Plutoniums experts.

		Sulfurst Inc.s Book Values		Sulfurst Inc.s Market Values
Current assets		$87,800		$87,800
Property, plant & equipment:
Land		81,500		102,400
Building & machinery (net)		169,200		169,200
Total assets		$338,500
Total liabilities		$95,000		$95,000
Common stock, $5 par value		93,800
Additional paid-in-capital		20,500
Retained earnings		129,200
Total liabilities and equities		$338,500

Prepare the entry to be made on the books of Plutonium Corporation to record its investment in Sulfurst Inc. Assume that during the first two years after acquisition of Sulfurst Inc., Sulfurst reports the following changes in its retained earnings:

Retained earnings, January 1, 2017		$129,200
Net income, 2017		41,200
Less: dividends, 2017		(24,000	)
Net income, 2018		44,300
Less: dividends, 2018		(23,400	)
Retained earnings, December 31, 2018		$167,300

(2) Plutonium uses the partial equity method to account for its investment in Sulfurst. Date Account Titles and Explanation Debit Credit 2017 (To record equity income (loss)) (To record dividend income) 2018 (To record equity income (loss)) (To record dividend income)