:13 Hs rsio8Ircomplete aer Marked ou of Change from the fair value method to the equity method Assume an inestor company acquires far $320,000 an 8 investmment in the common stock of an investee company an February 15, 2018. The investor determined the common stock of the Investee has a read ily determinable falr value. On December 31, 2018, the falrvalue of the 8% common slock invesTIenl is $340,000, and lhe ivstr compeny mude mode all of the appropriele adjuslinents in preparation of thc nnual finandal staterments. Or March 1, 2019, the investor company acouires an additional 17 % of commOn stcck of the investee for $765,000, thereby increasing the investor s overall ownership interest to 25% Required a. Prepare the journal entries the investor company should record on March 1, 2019 Note: If a journal entry is not recuired, select NA" as your answers for the drop-down aptions and leave the Debit and Credit answers hlank (7ero) Debit Credit Description C 0 0 Te auiusl value ul iveslrie JuLUL 0 0 To record the ourch ase of additional stock b. Forthis question only, assume instead that the investor determined, on February 15, 2018, that the common stock of the investee does not have a readity determinable fairvalue. In addition, the investar company determined that the additinnal 17% common stock purrhase on March 1, 2019 does qualify as an observable price change in orderly transaction. Prepare the journal entries the investor company should record on March 1, 2019 Note: If a journa entry is not required, select NA" as your answers tor the drop-down options and leave the Debit and Credit arswers blank (zero). Credit Debit Description o adjust value of nvestment accourt 0 0 0 To cord theurchase of additional stack c. For this question only, assume instead that the investor dete mined, on February 15, 2018, that the common stock of the investee does nat have a readity determinable fairvalue. In addition, the investar campany determined that the additinnal 17% common stock purchase on March 1, 2019 does not qua ify as an observable price change in orderly transaction. Prepare the journal entries the investor company should record on March 1, 2019. Note: It a journa entry is not required, select 'N/A" as your answers for the drop-down aptions and leave the Debit and Credit arswers blank (zero). Debic Credit Description Nnt splica adjust value of nvestment accou 0 0 ToeLUIe purcha ul additiunal sack Please aswer al parls of the queslion ll: h.eireseca: compler kumiuadenivial erpl arpal empl=2 S3r 7872cm de1 a07638 pay> 111