As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 550,000 shares for $630,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $400,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $670,000. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is not complete. No Transactions General Journal Debit Credit 1 1 Investment in equity affiliate 630,000 Cash 630,000 2 2 No journal entry required 3 3 Cash 27,500 Investment revenue 27,500 4 4 Investment revenue 40,000 X Loss on investments (unrealized, NI) 40,000