5. Ally, Inc. bought 40% of Blake Company on January 1, 2020 for $400,000. The equity method was used. No amortization was required. In 2020, Blake shipped to Ally merchandise with a cost of $25,000 and a selling price of $30,000. One-fourth of the merchandise remained in Ally's inventory at year-end and was sold in 2021. In 2021, Blake received merchandise from Ally, who recorded a gross profit of $20,000 on the sale. One-third of the merchandise remained in ending inventory. Blake reported net income of $60,000 in 2020 and $80,000 in 2021. Dividends of $10,000 were paid to Ally each year. Required; Prepare all equity method entries for 2020 and 2021