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Suppose on February 1, 2023, Tesla paid $41 million for a 40% investment in Spark Ltd., an auto parts manufacturer. Assume Spark Ltd. earned net

Suppose on February 1, 2023, Tesla paid $41 million for a 40% investment in Spark Ltd., an auto parts manufacturer. Assume Spark Ltd. earned net income of $6 million and paid cash dividends of $2 million during 2023.

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  1. Journalize these three transactions on the books of Tesla. Show all amounts in millions of dollars and include an explanation for each entry.
  2. What is its balance in the long-term investment account after all the transactions are posted?

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