Assume a buyer purchases all of the stocks of a target in a stock purchase for $500. The reported book values of the target's net assets equal their fair values. Subsequent to the purchase, the target reports net income of $100 and pays $25 in dividends to the buyer. Required 1. How much will the target's Stockholder's Equity (i.e. net assets) be after net income and dividends have been closed to Retained Earnings (assume that no other changes happened to Stockholder's Equity)? 2. Provide journal entries for the buyer to record the recognition of Equity Income and the receipt of the $25 dividends. 3. At what amount is the Equity Investment reported on the buyer's balance sheet? How does this compare to the target's Stockholder's Equity