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Problem $1-17($Algo$)($LO $1-4,1-7)$

On January $1,2024,$ Alamar Corporation acquired a $41$ percent interest in Burks, Incorporated, for $$232,000.$ On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $$368,000.$ During $2024,$ Burks reported net income of $$80,000$ and declared and paid cash dividends of $$21,000.$ Alamar sold inventory costing $$22,000$ to Burks during $2024$ for $$41,000.$ Burks used all of this merchandise in its operations during $2024.$

Required:

Prepare all of Alamar's $2024$ journal entries to apply the equity method to this investment.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

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$\backslash$table$[[,$No$,$Transaction,General Journal,Debit,Credit$],[0,1,$a$,$Investment in Burks, Incorporated,$90,000,],[,,,$Cash,,$90,000],[0,2,$b$,$Investment in Burks, Incorporated,,$],[0,3,$c$,$Investment in Burks, Incorporated,,$],[,,,,,]]$

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Loeffler Company owns $35\%$ of the common stock of Tetter Company and uses the equity method to account for the investment. During $2024,$ Tetter reported income of $$260,000$ and paid dividends of $$90,000.$ There is no amortization associated with the investment. During $2024,$ how much income should Loeffler recognize related to this investment?