On January 1, Austin Corporation purchased 30% of the outstanding voting common stock of San Marcos Industries common stock for $270,000 cash. On that date, the book value and fair value of the net assets of San Marcos Industries were $900,000. On June 30, San Marcos paid cash dividends of $20,000 to its shareholders. San Marcos' net income as of December 31 was $120,000. The fair value of the shares on December 31 was $300,000.
Prepare the journal entries necessary to record the above transactions on Austin Corporation's books during the year.

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The Answer of On January 1, Austin Corporation purchased 30% of the outstanding voting common stock of San Marcos Industries common stock for $270,000 cash. On that date, the book value and fair value of the net assets of San Marcos Industries were $900,000. On June 30, San Marcos paid cash dividends of $20,000 to its shareholders. San Marcos' net income as of December 31 was $120,000. The fair value of the shares on December 31 was $300,000.
Prepare the journal entries necessary to record the above transactions on Austin Corporation's books during the year.

On January 1, Austin Corporation Purchased 30% of the Outstanding