Equity method journal entries (price greater than book value) An investor company purchases a 20% interest in an investee company, and the investor concludes that it can exert significant influence over the investee. The book value of the investee's Stockholders' Equ on the acquisition date is $2,250,000 and the investor purchases its 20% interest for $585,000 The investor is willing to pay the purchase price because the investee owns an unrecorded (internally developed patent with a fair value equal to $585,000 The patent has a remaining useful life of 10 years. Subsequent to the acquisition, the investee reports net income of $540,000 and pays a cash dividend to the inves of $45,000 At the end of the first year, the investor sells the Equity Investment for $720,000 Prepare all of the required journal entries to account for this Equity Investment during the year touty investment Debit $45.000 Cash record the urth of the Ename Equity investment 0 Equty incone 5A Equity met ammast of the set hedend Esity Cath Esty Crack Credit 585,000 45,000 45,000 120,000