(Answered)-Zoop Corporation purchased for $300,000 a 30% interest in Murphy, Inc. This investment enables Zoop - (2025 Updated Original AI-Free Solution

Question

Zoop Corporation purchased for $300,000 a 30% interest in Murphy, Inc. This investment enables Zoop to exert significant influence over Murphy. During the year, Murphy earned net income of $180,000 and paid dividends of $60,000. Prepare Zoop’s journal entries related to this investment.