On January 1, 2018, Alamar Corporation acquired a 45 percent interest in Burks, Inc., for $196,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $350,000. During 2018, Burks reported net income of $81,000 and declared and paid cash dividends of $20,000. Alamar sold inventory costing $28,000 to Burks during 2018 for $41,000. 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.