Journal entry to record income from discontinued operations Pastel Corporation purchased a 30 percent interest in Lumpia Corporation on January 1, 2016, by issuing 10,000 shares with a market price of...

Pastel Corporation purchased a 30 percent interest in Lumpia Corporation on January 1, 2016, by issuing 10,000 shares with a market price of $1,000,000 and paid $500,000 in cash when the book value of Lumpia’s net assets equaled fair value. During the year, Lumpia reported a net income of $800,000 as follows (in thousands):

REQUIRED: Prepare the journal entry on Pastel’s books to recognize income from the investment in Lumpia for the year.