Equity method mechanicS An investor owns 25% of the outstanding common stock of an investee company, which allows the investor to exercise significant influence over the investee. The Equity...

I need the second part to the question.

Extracted text: Equity method mechanicS An investor owns 25% of the outstanding common stock of an investee company, which allows the investor to exercise significant influence over the investee. The Equity Investment was reported at $600,000 as of the end of the previous year. Durlng the year, the investor receives dividends of $30,000 from the investee. The investee reports the following income statemen for the year: Revenues $2,000,000 Expenses 1,570,000 Net income $430,000 Required a. How much equity income should the investor report in its current year income statement? $ 107,500 b. What amount should the investor report for the Equity Investment in its balance sheet at the end of the year?