Pursley, Inc. acquires 10% of Ritz Corporation on January 2, 2020, for $80,000 when the book value of Ritz was $800,000. Pursley adjusted the investment to its fair value of $162,500 at December 31, 2020. During 2020 Ritz reported net income of $125,000 and paid dividends of $30,000. On January 7, 2021, Pursley purchased an additional 20% of Ritz for $325,000, giving Pursley the ability to significantly influence the operating policies of Ritz. Any excess of cost over book value is attributable to goodwill with an indefinite life. What journal entry(ies) is(are) required on January 7, 2021?

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The Answer of Pursley, Inc. acquires 10% of Ritz Corporation on January 2, 2020, for $80,000 when the book value of Ritz was $800,000. Pursley adjusted the investment to its fair value of $162,500 at December 31, 2020. During 2020 Ritz reported net income of $125,000 and paid dividends of $30,000. On January 7, 2021, Pursley purchased an additional 20% of Ritz for $325,000, giving Pursley the ability to significantly influence the operating policies of Ritz. Any excess of cost over book value is attributable to goodwill with an indefinite life. What journal entry(ies) is(are) required on January 7, 2021?