Part One: Short Answer PLEASE SHOW ALL YOUR WORK. 1. (8 pts) On January 1, 2020, an investor purchases a 40% interest in an investee company. The investor concludes that it can exert significant influence over the investee and applies the equity method to account for its investment. The book value of the investee's Stockholder Equity on the acquisition date is $400,000, and the investor purchases its 40% interest for $200,000. The investee owns an unrecorded patent that is worth $50.000 and has a remaining useful life of five years. The investee reports net income of $100,000 for 2020 and pays total cash dividends of $60,000. On 1/1/21, the investor sells the investment for its market price of $230,000. Prepare all of the required journal entries to account for these transactions. Patent ( 5yrs) isten 2