Ignore income tax. E8-25A. (Learning Objective 3: Account for transactions using the equity method) Nelson Corporation owns equity-method investments in several companies. Suppose Nelson paid $1,500,000 to acquire a 40% investment in Simpson Software Company. Simpson Software reported net income of $670,000 for the first year and declared and paid cash dividends of $440,000. Requirements 1. Record the following in Nelson's journal: (a) purchase of the investment, (b) Nelson's proportion of Simpson Software's net income, and (c) receipt of the cash dividends. 2. What is the ending balance in Nelson's investment account?