On January 1, 2020. Pop, Inc., acquired 70 percent of the outstanding shares of Sam Company for $1,141,000 in cash. The price paid was proportionate to Sam's total fair value, although at the acquisition date, Sam had a total book value of $1,380,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sam's accounting records by $240,000. On January 1, 2021 , Pop acquired an additional 25 percent common stock equity interest in Sam Company for $415,000 in cash On its internal records, Pop uses the equity method to account for its shares of Sam During the two years following the acquisition, Sam reported the following net income and dividends: 2020 2021 Net Income $340,000 $440,000 Dividends declared 150,000 180,000 Pop's journal entry to record its January 1, 2021, acquisition of an additional 25 percent ownership of Sam Company shares 445,000 Investment in Sam Cash APIC 415.000 30,000 445,000 Investment in Sam Cash Gain from acquisition 415,000 30,000 415,000 Investment in Sam Cash 415,000 445,000 Investment in Sam Cash Equity Income 415,000 30,000