Parkland Company acquired 30% of the voting stock of Silverland Corporation on January 2, 2020 for $50 million. The basis difference was attributed to goodwill. During 2020, Silverland Corporation reported net income of $5,000,000, other comprehensive income of $150,000, and declared and paid cash dividends of $2,000,000. Parkland uses the equity method to report its investment in Silverland.

Required

1. Prepare Parklands 2020 journal entries related to its investment in Silverland. Use the attached T-account template.
2. Calculate the balance in Investment in Silverland, appearing on Parklands December 31, 2020 balance sheet. Use a separate sheet of paper to display your work.