On January 1, 2021, Alamar Corporation acquired a 38 percent interest in Burks, Inc., for $199,000. On that date, Burkss balance sheet disclosed net assets with both a fair and book value of $325,000. During 2021, Burks reported net income of $75,000 and declared and paid cash dividends of $22,000. Alamar sold inventory costing $25,000 to Burks during 2021 for $38,000. Burks used all of this merchandise in its operations during 2021.

Prepare all of Alamars 2021 journal entries to apply the equity method to this investment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)