Equity Method}

On January 1, 2018, Copper Corporation acquired \(25 \%\) of the 5,000 outstanding common shares of Burgess Inc. for \(\$ 4,000,000\), which equals the book value of Burgess. On December 31 , 2018, Burgess declared and paid a dividend of \(\$ 600,000\). On December 31, 2018, the carrying value of the Burgess investment in the statement of financial position of Copper was \(\$ 4,250,000\).

\section*{Required:}

1. Calculate the net income of Burgess for the year ended December 31, 2018 .

2. How would Copper record income from Burgess on its 2018 statement of earnings?

\section*{Exercise