Prepare all journal entries for the following investment during 2018:

On January 1, 2018, Taylor Inc. purchased 1/3 of Blue Co for $200,000. Blue Co reported earnings of $750,000 during 2018, and declared dividends of $60,000. At the date of purchase, the fair value of the net assets of Blue Co was $525,000. The fair value exceeded the book value of the net assets by $60,000. This excess of the fair value of the net assets over the book value of those net assets was due to depreciable assets with an estimated remaining useful life of 5 years. Blue Co uses straight-line depreciation.