Advanced Accounting

4 points On January 1, 2020 Gulf Co. purchased 80,000 shares of Bahrain Co. common stock for 1.600.000 cash granting Gull do interest and the try to che significant influence. The excess value of 536,000 of cost over book value was attributed solely goodwill Bahrain reported net income of 53560.000 and declared duidend of 555.000 for the year 2020 and net income of 420,000 and dividend of $120.000 for the year 2021. distributed evenly over the year. On November 1, 2021 Gulf sold 20,000 of its shares in Bahrain Co, for $12 each but maintains les significant influence with 30% ownership interest Required: (4 points) 1. Prepare the journal entries to record (please leave a line between entries) Gulf Investment in Bahrain on January 1, 2020 to Guif share of Bahrain income and dividend for the year 2021. 2. Calculate the resultant gain or less from the sale of the shares, 3. What the total effect in the 2021 Gulf Co. Income statement