On July 1, 2022, Burrough Company acquired 138,000 of the outstanding shares of Carter Company for $20 per share. This acquisition gave Burrough a 40 percent ownership of Carter and allowed Burrough to significantly influence the investee's decisions. As of July 1, 2022, the investee had assets with a book value of $6 million and liabilities of $167,750. At the time, Carter held equipment appraised at $288,750 more than book value; it was considered to have a seven-year remaining life with no salvage value. Carter also held a copyright with a five-year remaining life on its books that was undervalued by $607,500. Any remaining excess cost was attributable to an indefinite-lived trademark. Depreciation and amortization are computed using the straight-line method. Burrough applies the equity method for its investment in Carter. Carter's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Carter's income, earned evenly throughout each year, was $641,000 in 2022, $670,000 in 2023, and $717,200 in 2024. In addition, Burrough sold inventory costing $86,400 to Carter for $144,000 during 2023. Carter resold $110,000 of this inventory during 2023 and the remaining $34,000 during 2024. Required: a. Determine the equity income to be recognized by Burrough during each of these years. b. Compute Burrough's investment in Carter Company's balance as of December 31, 2024. Note: For all requirements, enter your answers in whole dollars and not in millions. a. Equity income 2022 a. Equity income 2023 a. Equity income 2024 b. Investment in Carter On January 1, 2024, Alamar Corporation acquired a 35 percent interest in Burks, Incorporated, for $235,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $347,000. During 2024, Burks reported net income of $79,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $22,000 to Burks during 2024 for $44,000. Burks used all of this merchandise in its operations during 2024. Required: Prepare all of Alamar's 2024 journal entries to apply the equity method to this investment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 Record the income on intra-entity sale. Note: Enter debits before credits. Transaction e General Journal Debit Credit Record entry Clear entry View general journal