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Sarasota Corporation purchased for $301,000 a 25% interest in Murphy, Inc. This investment enables Sarasota to exert significant influence over Murphy. During the year, Murphy

Sarasota Corporation purchased for $301,000 a 25% interest in Murphy, Inc. This investment enables Sarasota to exert significant influence over Murphy. During the year, Murphy earned net income of $169,000 and paid dividends of $61,000.

Prepare Sarasotas journal entries related to this investment.

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