On January 1, 2021, Alamar Corporation acquired a 40 percent interest in Burks, Inc., for $210,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $360,000. During 2021, Burks reported net income of $80,000 and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2021 for $40,000. Burks used all of this merchandise in its operations during 2021.

Prepare record the 40 percent income earned by Alamar from this investment.

Prepare record the investee dividend declaration.

Prepare record the collection of dividend from investee.