We acquire 30% of the company for a thousand dollars.The fair value of the investee is 3000, and the book value is 2500. The difference is from property plant equipment with a fair 500 higher than its book value. During the year, the investee reports income of 120 and pays dividends of 40. PP&E is being depreciated over 10 years and 10% of initial goodwill is impaired. We acquired 30% of the company for 1000 dollars, fair value is 3000, book value is 2500. You tested annually for impairment. We acquire 30% of the company for a thousand dollars. The fair value of the investee is 3000, and the book value is 2500. The difference is from property plant equipment with a fair 500 higher than its book value. During the year, the investee reports income of 120 and pays dividends of 40. PP&E is being depreciated over 10 years and 10% of initial goodwill is impaired. We acquired 30% of the company for 1000 dollars, fair value is 3000, book value is 2500. You tested annually for impairment.

In the journal entry there is:

Debit: Cash 12

Credit: Investment 12

Could you please tell me what does this do?