On January 1, Newman acquired a 30% interest in the common shares of MultiGram Entertainment at a cost of $ 4,295,000. During the year, MultiGram reported a net loss of $ 630,000 and paid no dividends. At acquisition, MultiGram’s market value equaled the book value of its net assets. Prepare the journal entries required to record the above events assuming that Newman uses the equity method to account for its investment in MultiGram.