Recording Entries Under the Equity Method On January 1, Evergreen Inc. purchased 3,750 of the 15,000 outstanding shares of common stock of Nature Net Inc. obtaining significant influence of the company. The shares were purchased for $12,000 cash and Evergreen Inc. intends for it to be a long-term investment. During the year, Nature Net Inc. reported net income of $62,400 and declared and paid dividends of $28,800. a. Prepare Evergreen inc.'s entry on January 1, for the purchase of the equity investment. b. Prepare Evergreen Inc's entries on December 31, to record its investment income and the receipt of dividends. Date Account Name a Jan. 17 Dec 31 To record investment income Dec. 31 Dr. To record receipt of declared dividends c. What is the ending balance of the Investment account on December 317 Investment account balance, Dec. 31 $1 Cr.