On August 4, 2010, Coffman Corporation purchased 3,000 shares of Dittman Company for $150,000. The following information applies to the stock price of Dittman Company:
Price
12/31/2010 ... $57
12/31/2011 ..... 52
12/31/2012 ..... 43

Dittman Company declares and pays cash dividends of $1 per share on June 1 of each year.

Required:
1. Prepare journal entries to record the facts in the case, assuming that Coffman purchased the shares for the trading portfolio.
2. Prepare journal entries to record the facts in the case, assuming that Coffman purchased the shares for the available-for-sale portfolio.
3. Prepare journal entries to record the facts in the case, assuming that Coffman used the equity method to account for the investment. Coffman owns 30 percent of Dittman and Dittman reported $45,000 in income each year.