2. Open, Inc. bought 50% of Closed Company on January 1, 20x1 for $725,000. The equity method was used. There was a patent valued at $150.000 at the acquisition and has a 10 year service life. Closed Company's income statement showed net income of $175,000 in 20X1 and $225,000 in 20x2. Closed company paid Open Inc. $25,000 of dividends each year. (5 points Chapter 1 L02- L05) Required: Prepare all equity method entries for 20X1 and 20X2 including acquisition entry, the Investee's net income and the dividends. Account Debit Credit Account Debit Credit What is the balance in the Equity Investment Account after these transactions? 12/31/20X2