On January 3, 2016, Martin Company purchased for $500,000 cash a 10% interest in Renner Corp. On that date, the net assets of Renner had a book value of $3,700,000. The excess of cost over the underlying equity in net assets is attributable to undervalued depreciable assets having a remaining life of 10 years from the date of Martins purchase. The fair value of Martins investment in Renner securities is as follows: December 31, 2016, $560,000, and December 31, 2017, $515,000. On January 2, 2018, Martin purchased an additional 30% of Renners stock for $1,545,000 cash when the book value of Renners net assets was $4,150,000. The excess was attributable to depreciable assets having a remaining life of 8 years. During 2016, 2017, and 2018, the following occurred.

		Renner Net Income		Dividends Paid by Renner to Martin
2016		$350,000		$15,000
2017		450,000		20,000
2018		550,000		70,000

On the books of Martin Company, prepare all journal entries in 2016, 2017, and 2018 that relate to its investment in Renner Corp., reflecting the data above and a change from the fair value method to the equity method.

Date	Account Titles and Explanation	Debit	Credit

	(To record the purchase of a 10% interest in Renner Corp.)

	(To record the receipt of cash dividends from Renner Corp.)
	(To recognize as part of stockholders equity the increase in fair value of available-for-sale securities.)

	(To record the receipt of cash dividends from Renner Corp.)
	(To recognize as part of stockholders equity the decrease in fair value of available-for-sale securities.)

	(To record purchase of additional interest in Renner and to reflect retroactively a change from the fair value to the equity method.)

	(To reclassify investment carried under fair value method to investment carried under equity method.)
	(To eliminate accounts and balances used under fair value method accounting.)

	(To record equity in net income of Renner.)
	(To record the receipt of cash dividends from Renner Corp.)