Equity Method for Stock Investment On January 4, 2016, Spandela Company purchased 72,000 shares of Flington Company directly from one of the founders for a price of $66 per share. Fillington has 200,000 shares outstanding, induding the Spandela shares. On July 2, 2076, Filington paid 5194,000 in total dividends to its shareholders. On December 31, 2016, Fington reported net income of $672,000 for the year, Spandela uses the equity method in accounting for its Investment in Fington a. Journalize the Spandelle Inc entries for the transactions involving its investment in Flington Company during 2016 2016 Jan 4 Investment in lington Co. Stock 42,000 40.000 Cash UND 2016 July 2 Cash Dividends Tavestment in Filington Co. Stock 2.800 114999 2016 Dec 31 Investment in Filington Co. Stock Income of Filington Co IN CM b. Determine the December 31, 2016, balance of the investment in lington Company stock account 4,856,880