McKnight Corporation owns equity-method investments in several companies. Suppose McKnight paid $1,100,000 to acquire a 25% investment in Dorsett Software Company. Dorsett Software reported net income of$670,000 for the first year and declared and paid cash dividends of $450,000. Requirements 1. Record the following in McKnight's journal: (a) purchase of the investment, (b) McKnight's proportion of Dorsett Software's net income, and (c) receipt of the cash dividends. 2. What is the ending balance in McKnight's investment account? Requirement 1. Record the following in McKnight's journal: (a) purchase of the investment, (b) McKnight's proportion of Dorsett Software's net income, and (c) receipt of the cash dividends. (Record debits first, then credits. Exclude explanations from any journal entries.) (a) Begin by recording the entry for the purchase of the investment in Dorsett Software Company. Journal Entry Credit Debit Date Accounts