Record the transaction

On February 1, 2021, in order to set a direction for future expansion, P3 purchased a 40% investment in Micas Mirror Mazes, Inc. (M3). P3 paid $1,500,000 for the 40% interest in M3 . From the point of acquisition, M3 had income of $800,000 and paid dividends of $20,000. P3 paid $50,000 above book value of tangible assets for undervalued buildings on M3 s books with a 10-year life.