Lucky Inc. acquired 40% of Negative Enterprises for $3,200,000 on January 1, 2021. The fair value and book value of 40% of Negatives identifiable net assets was $3,200,000 and $2,560,000 on that date, and the difference was attributable to assets that would be depreciated over 10 years. During 2021, Negative recognized net income of $600,000 and paid dividends of $200,000. Negative had a total fair value of $10,000,000 as of December 31,2021

Prepare the journal entries necessary to account for the Negative investment, assuming that Lucky accounts for that investment as an equity method investment