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Vaughn Corporation purchased for $307,000 a 30% interest in Murphy, Inc. This investment enables Vaughn to exert significant influence over Murphy. During the year, Murphy

Vaughn Corporation purchased for $307,000 a 30% interest in Murphy, Inc. This investment enables Vaughn to exert significant influence over Murphy. During the year, Murphy earned net income of $198,000 and paid dividends of $55,000. Prepare Vaughns journal entries related to this investment.

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