Equity Method of Accounting 

Date	Event	Investment ($)	Income from Investment ($)
Jan 1	Initial investment	50,000
Dec 31	Share of net income		5,000
Dec 31	Dividends received		2,000

Tasks:

1. Prepare the journal entries to record the investment, share of net income, and dividends received.
2. Calculate the carrying amount of the investment at the end of the year.

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