Recording Entries for Equity Investment: FV-NI and Equity Method On January 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 and declared and paid dividends of $8,000. As of December 31, common shares of Towne Corporation were trading at $20 per share. Journal Entries with Significant Influence Journal Entries without Significant Influence b. Assume that Allen Corporation did not have significant influence over Towne Corporation. Record the entries during the year for (1) the purchase of the investment, (2) the receipt of declared dividends, and (3) the fair value adjustment