On January 1, 2018, Blue Corporation purchased 20% of the outstanding voting shares in Green Corporation for $ 1,675,000. At the time of purchase, Greens net assets were undervalued by $80,000 and had a remaining useful life of 8 years. Both companies have a December 31 year-end. At the end of 2018, Green reported a net income of $300,000. Also on December 31, 2018, the market value of the investment in Green shares is $ 1,590,000. On January 10, 2019, Green declared and paid a cash dividend. Blues ownership entitles it to $26,000 of the dividend.

REQUIRED: Prepare the journal entries on the books of Blue Corporation to record the transactions described above, assuming that the 20% interest in Green represents significant influence.