5, (15 points) Fortran Inc. purchased 100,000 shares, representing more than 20%, of Cobol Company on January 1, 2016. On July 1, 2016, Cobol paid dividends. 25% was purchased, cost was $5,250,000, total Dividends paid was $1,000,000 and Net Income is $4,000,00oThe market price of Cobol's stock at 12/31/16 was $60 per share. a. b. c. d. What method of accounting should Fortran Inc. use to account for the investment in Cobol. Prepare the journal entry for the receipt of dividends for Fortran on July 1, 2016 Prepare the necessary journal entry (s) for Fortran as of December 31, 2016. What is the value of the investment in Cobol on Fortran's balance sheet at December 31, 2016, if Fortran did not elect the fair value option? What is the value of the investment in Cobol on Fortran's balance sheet at December 31, 2016, if Fortran elected the fair value option? Prepare the necessary journal entry. e