I need the second part to the question. Equity method mechanicSAn 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 wasreported 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 statemenfor theyear:Revenues$2,000,000Expenses1,570,000Net income$430,000Requireda. How much equity income should the investor report in its current year income statement?$ 107,500b. What amount should the investor report for the Equity Investment in its balance sheet at the end of theyear?

The word "equity income" refers to money earned through stock dividends. A dividend is essentially…

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 Investmer orted at $600,000 as of the end of the previous year. During the year, the Investor recelves dividends of $30,000 from the Investee. The investee reports the following Income sta - the year: evenues xpenses $2,000,000 1,570,000 Net income S$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 halann