On January 1, 2021, McAdam Ltd., a private company reporting under ASPE, purchased 25% of the common shares of Tomecek Corporation for $175,000. Tomecek reported profit of $85,000 for 2021 and paid dividends of $12,000 on December 31, 2021. McAdam’s year end is December 31. Assuming that there is not a quoted market price for Tomecek’s shares, and that McAdam elects to report investments with significant influence using the cost method, prepare the required journal entries.