4 On January 1, 2008, Caso. Corporation purchased 20,000 shares of Blunder Corporations common stock at $50 per share. Blunder has 200,000 shares of common stock outstanding, reported 2008 net income of $400,000, and paid 2008 dividends of $100,000. This is the only long term investment owned by Caso.

1. Prepare the journal entry to record the investment in Blunder Corporation stock.
2. On the date that Blunder announced net income of $400,000, what should Caso enter in its accounting records?
3. When Caso receives dividends from Blunder, what journal entry should Caso make?
4. If the market value of Blunders common stock is $60 per share on December 31, 2008, what entry, if any should Caso record at year end.
5. If the market value of Blunders common stock is $40 per share on December 31, 2008, what entry, if any should Caso record at year end.