MileK Company acquires 30% of the voting stock of Hoola Corporation for $7,000,000 on January 1, 2020. At the time, the book value of Hoola was $20,000,000. At Dec.31, 2020, Hoola reported net income of $3,000,000 and declared and paid dividends of $500,000. MileK uses the equity method to report its investment in Hoola stock.

3. How many transactions do accounting department needs to record for this company during fiscal year 2020?
4. How to make journal entries to record those transactions.
5. What is the investment balance on MileKs balance sheet on December 31, 2020?