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The Equity Method of Accounting for Investments 31 17. On January 1. 2018, Alamar Corporation acquired a 40 percent interest in Burks, Inc., for $210.000 On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $360,000 During 2018, Burks reported net income of $80,000 and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2018 for $40.000. Burks used all of this merchandise in its operations during 2018. Prepare all of Alamar's 2018 journal entries to apply the equity method to this investment. 18. Milani Inc acquired 10 nanom
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