Assets $600,000 Liabilities Common Stock Retained Earnings Total $100,000 300,000 200,000 $ 600,000 Total $600,000 On January 1, 20X7, Purple Company acquired 100 percent of Amber's stock for $500,000. At the acquisition date, the book values and fair values of Amber's assets and liabilities were equal. Amber reported net income of $50,000 for 20x7 and paid dividends of $20,000. Required: a. Give the journal entries recorded by Purple on its books during 20x7 if it accounts for its investment in Amber using the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Debit Credit No A Event 1 General Journal Investment in Amber Corporation Cash 500,000 500,000 B N 50,000 Investment in Amber Corporation Income from Amber Corporation 50,000 3 20,000 Cash Investment in Amber Corporation 20,000 b. Give the consolidation entries needed on December 31, 20X7, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event Accounts Debit Credit A 1 50,000 X x 20,000 Income from Amber Corporation Dividends declared Investment in Amber Corporation Common stock x 30,000 X 300.000 Retained earnings 200,000 500,000 Investment in Amber Corporation *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted