a. Provide the entry by Mercedez Company to record the acquisition at a cost of $40,000. Date Jan. 1 Investment in Stock Cash Account Name Dr. 43840 Cr. 43840 b. Assume that on December 31 (end of the accounting period), Auto Supplies Inc. reported net income of $12,000. Provide all December 31 year-end entries for Mercedez Company. Date Account Name Cr. Dr. Dec. 31 To record proportionate share of investee's net income Dec. 31 To adjust for depreciation c. In February of the following year, Auto Supplies Inc. declared and paid a $2 per share cash dividend. Provide the necessary entry for Mercedez Company. Date Account Name Dr. Cr. February