Smart Cookie Corpora-tion purchased 40% of the 320,000 outstanding shares of JT’s Fine Foods, Inc. on January 1 of the current year. Smart Cookie acquired the shares at a price of $ 3.20 per share. JT’s Fine Foods, Inc. reported net income of $ 64,000 and declared and paid cash dividends of $ 25,600 during the current year. At the time of acquisition, the book value of JT’s Fine Foods’ net assets equaled its market value. Prepare all journal entries necessary to account for this investment in JT’s on Smart Cookie’s books under the equity method.