1. Equity Method (30 points) May Company acquires a 40% interest in Barrett Corporation and concludes that it has significant influence over Barrett. The book value of Barrett's stockholders' equity is $800,000 and May pays $450,000 for the investment. An excess of purchase price over book value was attributable to an unrecorded customer list worth $325,000, with a useful life of 10 years. After the acquisition, Barrett reported net income of $300,000 and paid May a dividend of $20,000. At the end of the year, May sells the investment for $550,000. Prepare all entries related to the investment during the year