9) On January 1, 2021, Mathers Corp. acquired a 35% interest in David Inc. for $275,000. On that date, Davids balance sheet disclosed net assets of $400,000. During 2021, David reported net income of $120,000 and paid cash dividends of $37,000. Mathers sold inventory costing $45,000 to David during 2021 for $55,000. David used all of this merchandise in its operations during 2021. Any excess cost over fair value is attributable to an unamortized trademark with a 20-year remaining life.

Required: Prepare all of Mathers journal entries for 2021 to apply the equity method to this investment.