On January 1, 2021, Cam Co. bought 20% of the outstanding common stock of Lake Co. for $150,000. On that date, Lake's net assets had a fair value of $450,000 and a book value of $400,000. The difference was attributable to the fair value of Lake's buildings (remaining life of 5 years) and land exceeding book value, each accounting for half of the difference. For 2021, Lake's net income was $75,000 and Lake declared and paid cash dividends of $15,000. Cam accounts for this investment by the equity method. At the end of 2021, the fair value of the investment is $175,000. Identify the following statements that are TRUE regarding Cam's accounting for the investment Of the $150,000 investment in Lake, $70,000 pertains to goodwill. The journal entry for Lake's net income includes a debit to Investment in Equity Affiliate for $15,000. The book value of the Investment in Equity Affiliate at the end of 2021 is $175,000 The journal entry for the depreciation adjustment includes a credit to Investment in Equity Affiliate for $1,000. The journal entry for late's declared The book value of the Investment in Equity Affiliate at the end of 2021 is $175,000 The journal entry for the depreciation adjustment includes a credit to Investment in Equity Affiliate for $1,000. The journal entry for Lake's declared and paid cash dividends includes a credit to Dividend Revenue for $3,000. The journal entry for Lake's net income includes a credit to Investment Revenue for $15,000 The journal entry for Lake's declared and paid cash dividends includes a credit to Investment in Equity Affiliate for $3,000. The journal entry for the depreciation adjustment includes a debit to Investment Revenue for $1,000