On January 1, Ball Corporation purchased shares of Leftwich Company common stock.

a. Assume that the stock acquired by Ball represents \(15 \%\) of Leftwich's voting stock and that Ball classifies the investment as available-for-sale. Use the financial statement effects template (with amounts and accounts) to record the following transactions:

1. Ball purchased 5,000 common shares of Leftwich at \(\$ 15\) cash per share.

2. Leftwich reported annual net income of \(\$ 40,000\).

3. Ball received a cash dividend of \(\$ 1.10\) per common share from Leftwich.

4. Year-end market price of Leftwich common stock is \(\$ 19\) per share.

b. Assume that the stock acquired by Ball represents \(30 \%\) of Leftwich's voting stock and that Ball accounts for this investment using the equity method since it is able to exert significant influence. Use the financial statement effects template (with amounts and accounts) to record the following transactions:
1. Ball purchased 5,000 common shares of Leftwich at \(\$ 15\) cash per share.
2. Leftwich reported annual net income of \(\$ 40,000\).
3. Ball received a cash dividend of \(\$ 1.10\) per common share from Leftwich.
4. Year-end market price of Leftwich common stock is \(\$ 19\) per share.