The Coca-Cola Company owns 28 percent of the voting stock of Coca-Cola FEMSA, acquired at book value. Assume that Coca-Cola FEMS A reports income of $5 million for 2016. Coca-Cola FEMSA regularly sells canned beverages to Coca-Cola at a markup of 35 percent on cost. During 2016 Coca-Cola FEMSA's sales to Coca-Cola totaled $25 million. Coca-Colas January 1, 2016, inventories include $1, 350,000 purchased from Coca-Cola FEMSA. Coca-Cola's December 31, 2016, inventories include $1, 215,000 purchased from Coca-Cola FEMSA. Prepare the 2016 journal entry on Coca-Cola's books to recognize its income from Coca-Cola FEMSA under the equity method