Coffee Corp. purchased 45% of the outstanding shares of Cream Corp. for $1,845,000. The investment allows Coffee to exert significant influence over the operations of Cream. During 2011 Cream recognized net income of $2,500,000 and paid $650,000 in dividends. Discuss how Coffee should account for its investment in Cream and how the information would appear in Coffee's balance sheet, income statement, and cash flow statement.