On October 1, 2017 Dairfax Financial Holdings made a bid to take-over Blueberry. The price of Blueberry shares at that point in time was $8. Due to insufficient capital, the deal did not close. On December 31, 2017 Dairfax instead chose to purchase 20% of the company at fair market value.

Blueberry information as of December 31, 2017

- Share price: $12

- # of shares outstanding: 560,000,000

Required:

Using the equity method, record the journal entry for Dairfaxs purchase on December 31, 2017.