- / 30 Question 1 of 5 View Policies Current Attempt in Progress Cullumber Corp. is a medium sized corporation specializing in quarrying stone for building construction. The company has long dominated the market, at one time achieving a 70 marto penetration. During prosperous years, the company's profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Qullumber has had a policy of Investing idle cash in equity securities. In particular. Cullumber has made periodic investments in the company's principal supplier, Norton Industries. Although the firm currently owns 12% of the outstanding common stock of Norton Industries, Cullumber does not have significant influence over the operations of Norton Industries Cheryl Thomas has recently joined Collomber as assistant controller, and her first assignment is to prepare the 2020 year-end adjusting entries for the accounts that are valued by the fair value role for financial reporting purposes. Thomas has gathered the following information about Cullumber pertinent accounts. 1 Cullumber has equity securities related to Delaney Motors and Patrick Electric. During 2020, Cullumber purchased 106,000 shares of Delaney Motors for $1.470.000. these shares currently have a fair value of 51.669.000 Cullumber investment in Patrick Electric has not been profitable, the company acquired 55.000 shares of Patrick in April 2020 at $22 per share, a purchase that currently has a value of $752.000, Prior to 2020. Cullumber invested $22.605.000 in Norton Industries and has not changed its holding this year. This investment in Norton Industries was valued at $21.671.000 on December 31, 2019. Collumber 1 ownership of Norton Industries has a current fair value of $22.064,000 on December 2020 2 Prepare the appropriate adjusting entries for Cullumber as of December 31, 2020, to reflect the application of the "fair value rule for the securities described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually no entry is required, select "No Entry for the account title and enter for the amounts) Debit Credit Account Titles and Explanation NWPA - Eaca DELL p/s40- ndeleo -19 Question 1 of 5 > -/30 111 Prepare the appropriate adjusting entries for Cullumber as of December 31, 2020, to reflect the application of the fair value rule for the securities described above. Creditoccountitles are automatically indented when amount is entered. Do notIndent manually no entry is required select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Prepare the entries for the Norton investment, assuming that Cullumber owns 25% of Norton's shares. Norton reported income of $523.000 in 2020 and paid cash dividends of 5%0.000. Credit account titles are automatically indented when amount is entered Do not indent manually. If no entry squired, select "No Entry for the accounts and enter for the amounts) No. Account Titles and Explanation Debit Credit (1) (to record revenue) (2) (To record dividends) MWA DELL