On January 2, 2XX0, Member Corporation purchased 35% of the outstanding common stock of Entertainment, Inc. and subsequently used the equity method to account for the investment. At the time of the acquisition, Entertainment's net assets had fair values approximating book values. During 2XXO Entertainment, Inc. reported net income of $600,000 and distributed dividends of $150,000. The ending balance in the Investment in Entertainment, Inc. account at December 31, 2XX0 was $750,000 after applying the equity method during 2XX0. Provide the journal entries required during the year. 1. Equity investment Cash (To record the purchase of the equity investment.) 2. Equity Investment Debit 0 Credit 0 0 0