On July 1, Allen Corporation purchased 30% of the 30,000 outstanding common shares of Towne Corporation at $17 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Towne Corporation were equal. During the year, Towne Corporation reported net income of $24,000. Towne Corporation declared and paid cash dividends of $8,000 on December 30 to shareholders on record. As of December 31, common shares of Towne Corporation were trading at $20 per share.

Please Record Allens entries on (1) July 1, (2) December 30, and (3) December 31, assuming that Allen Corporation had signicant inuence over Towne Corporation.

\begin{tabular}{|c|c|c|c|} \hline Date & Account Name & Dr. & Cr. \\ \hline \multirow[t]{3}{*}{ 1. Jul. 1} & Investment in Stock & 153,000 & 0 \\ \hline & Cash & 0 & 153,000 \\ \hline & To record investment purchase. & & \\ \hline \multirow[t]{3}{*}{ 2. Dec. 30} & Cash & 2,400 & 0 \\ \hline & Investment in Stock & 0 & 2,400 \\ \hline & To record receipt of dividends. & & \\ \hline \multirow[t]{3}{*}{ 3. Dec. 31} & Investment in Stock & 7,200 & 0 \\ \hline & Investment Income & 0 & 7,200 \\ \hline & To record proportionate share of investee's net income & & \\ \hline \multirow[t]{3}{*}{ Dec. 31} & N/A-debit & 0 & 0 \\ \hline & N/A-credit & 0 & 0 \\ \hline & ent to fair value. & & \\ \hline \end{tabular}