Mainmont Industries uses the equity method to account for its long-term equity investments. The following information from the financial statements of Mainmont refers to an investment in the securities of Tumbleweed Construction, a company 30 percent owned by Mainmont. 1997 1996 Long-term investment in equity securities $29,000 $25,000 Income from equity securities 12,000 7,000 Mainmont neither purchased nor sold any equity securities during 1997. REQUIRED:

a. How much net income did Tumbleweed Construction earn during 1997?

b. What was the dollar amount of the total dividend declared by Tumbleweed Construction during 1997?

c. Provide the journal entries recorded by Mainmont during 1997 with respect to its invest¬ ment in Tumbleweed Construction.