Company Chad outstanding 30,000 common shares. On January 1, 2018, Company D purchased some of these shares as a non-current investment at $25 per share. At the end of 2018, Company C reported the following: profit, $50,000, and cash dividends declared and paid during the year, $25,500. The market value of Company C stock at the end of 2018 was $22 per share.

Required:1. For each of the following cases (in the tabulation), identify the method of accounting that Company D should use. Explain why.2. Prepare the journal entries for Company D at the dates indicated for each of the two independent cases, assuming that the investments will be held long term. If no entry is required, explain why. Use the following f onnat: