LO $1-4,1-7$

On January $1,2021,$ Alamar Corporation acquired a $40$ percent interest in Burks, Inc., for $$210,000.$ On that date, Burks's balance sheet disclosed net assets with

both a fair and book value of $$360,000.$ During $2021,$ Burks reported net income of $$80,000$ and declared and paid cash dividends of $$25,000.$ Alamar sold inventory

costing $$30,000$ to Burks during $2021$ for $$40,000.$ Burks used all of this merchandise in its operations during $2021.$ Prepare all of Alamar's $2021$ journal entries to

apply the equity method to this investment.