The following events occurred in 2020 and 2021 in relation to Beaver Inc.s investment in Big Lion Corporation:

On January 1, 2020 Beaver Inc. acquired 25,000 shares of Big Lion for $50 a share. Because Beaver Inc owns 25,000 of the 100,000 outstanding shares of Big Lion it accounts for its investment using the equity method.

Big Lion and Beaver Inc. both have fiscal years ending on December 31. For fiscal 2020, Big Lion Corporation reported income of $450,000 and paid a dividend of $300,000.

On December 31, 2020 shares of Big Lion Corporation were trading at $40 per share

For fiscal 2021, Big Lion Corporation reported income $150,000 and paid a dividend of $100,000

On December 31, 2021 shares of Big Lion Corporation were trading at $60 per share

Required: 1) What entry does Beaver Inc. make to record its investment in Big Lion Corporation on January 1, 2020?

2) What amount of income/loss does Beaver Inc. record on its 2020 Income Statement related to its investment in Big Lion Corporation?

3) What is the book value of Beaver Inc.s investment in Big Lion Corporation at the end of 2020? At the end of 2021?