Planet Corporation acquired 100 percent of the voting common stock of Saturn Company on January 1,20×7, by issuing bonds with a pat value and fair value of $670,000 and making a cash payment of $24,000. At the date of acquisition, Saturn reported assets of $740,000 and liabilities of $140.000. The book values and fair values of Saturn's net assets were equal except for land and copyrights Saturn's land had a fair value $16.000 higher than its book value. All of the remaining purchase price was attributable to the increased value of Saturn's copyrights with a remaining useful life of eight years. Saturn Compary reported a loss of $88.000 in 20×7 and net income of $120,000 in 20×8. Satum paid dividends of $24.000 each year. Required: Assuming that Planet Corporation uses the equity method in accounting for its investment in Saturn Company, prepare all journal entries for Planet for 20X7 and 20×8.