On January 1, 2018, Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $228,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $327,000. During 2018, Burks reported net income of $79,000 and declared and paid cash dividends of $29,000. Alamar sold inventory costing $26,000 to Burks during 2018 for $42,000. 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.

Date                    Account Title                                         Debit               Credit

Jan 1, 2018         Investment in Burks, Inc                    $228,000

                          Cash                                                                         $228,000

Date                    Account Title                                         Debit               Credit

Dec. 31, 2018     Investment in Burks, Inc                     $30,180

                          Revenue from investment                                          $30,180

Working:

= Net income of Burks * Ownership percentage

= 79,000 * 39%

= $30,180

Date                    Account Title                                         Debit               Credit

Dec. 31, 2018     Dividend receivable                          $11,310

                           Investment in Burks, Inc                                              $11,310

Working

= Dividends declared * Ownership percentage

= 29,000 * 39%

= $11,310

Date                    Account Title                                         Debit               Credit

Jan 1, 2018         Cash                                                    $11,310

                          Dividend Receivable                                                   $11,310

answer; break-even analysis;