King Inc, together with a 3^rd party investor, have created a crypto mining company whereby King Inc owns 65% of the entity. King Inc pays the 3^rd party a fixed fee of 5% of all BTC mined and in return is entitled to 65% of all remaining profits. Assume the following:

• On January 1, 2020 King Inc contributed 700 BTC and the 3^rd party contributed 300 BTC
• During 2020 approximately 500 BTC was mined by the company.
• The average price of BTC was $12,000 / 1 BTC during the year (assume BTC was mined evenly throughout the period)
• Electricity and other costs for the full year amounted to $750,000
• The closing price of BTC as of 12/31/2020 was $30,000 /1 BTC

Given the background above calculate and list the journal entries for the following:

1. What was the fully year earnings of the company?
2. As of December 31, 2020 what was King Inc's interest in the company worth?
3. What was the rate of return for King Inc's investment?