(10 Marks) On January 1, 2020, a corporation purchased 4,000 common shares of Alpha Limited for $96,500. On that date, Alpha had 10,000 common shares outstanding and $132,000 in shareholders' equity on its balance sheet. On January 1, the fair values of most of Alpha's assets and liabilities were equal to their book values with two exceptions. The fair value of its inventory was $15,000 less than its book value. Its equipment's fair value was $48,000 less than its book value and has a useful lifespan of 14-years. The fair values of the remaining assets and liabilities were equal to their book values. During 2020, the corporation reported sales of $46,500 to Alpha, achieving a 33 1/3% mark up on sales. One third of those sales remained in Alpha's inventory at year end. Both companies have 40% marginal income tax rates. Alpha reported an after-tax profit of $124.000 for the year and declared and issued $65,000 in cash dividends. The investing company uses the equity method to record entries concerning its investment in Alpha within its own financial records. Answer the following questions. Debit and credit the correct accounts. Record dollar amounts to the nearest dollar without dollar sign ($) or commas, e.g. 15000. 1. What entry would you make when Alpha reports its 2020 profit? Record dollar amounts to the nearest dollar without dollar sign ($) or commas, e.g. 15000. 1. What entry would you make when Alpha reports its 2020 profit? Debit and credit for what dollar amount: 2. What entry would you make concerning Alpha's dividends? Debit and credit for what dollar amount: 3. What entry would you make concerning acquisition differential? Debit and credit for what dollar amount: 4. What entry would you make concerning ending inventory? Debit and credit for what dollar amount: Record dollar amounts to the nearest dollar without dollar sign ($) or commas, e.g. 15000. 1. What entry would you make when Alpha reports its 2020 profit? Debit and credit for what dollar amount: - Dividends payable 2. What entry would you make concernin Investment income Cash Debit and credit Dividends for what dollar amount: Investment Dividend income Dividends receivable 3. What entry would you make concerning acquisition differential? Debit and credit for what dollar amount: 4. What entry would you make concerning ending inventory? Debit - and credit for what dollar amount: 5. What amounts concerning its investment in Alpha are presented in the company's financial 4. What entry would you make concerning ending inventory? Debit and credit for what dollar amount: 5. What amounts concerning its investment in Alpha are presented in the company's financial statements? A. Investment account balance sheet): B. Investment income (income statement)