Duffy Dog Limited has a total of 210,000 common shares issued. On October 3, 2020, CT Inc. purchased a block of these shares in the open market at $50 per share to hold as a long-term equity investment. Duffy Dog reported net income of $542,000 for the year ended September 30, 2021, and CT received a $0.26-per-share dividend on that date. Duffy Dog's shares were trading at $54 per share at September 30, 2021. This problem assumes three independent situations related to the accounting for this investment by CT: Situation 1: CT purchased 23,100 Duffy Dog common shares. Situation 2: CT purchased 73,500 Duffy Dog common shares. Situation 3 : CT purchased 210,000 Duffy Dog common shares. (a) 1. For situation 1. is it likely that CT has significant influence over the investee? If it does not, record all journal entries relating to the investment for the year ended September 30, 2021, using the fair value through profit or loss model. If CT has significant influence, use the equity method to record these transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credi (To record dividends) (To record unrealized gain on investment) 2. From the journal entries prepared in (1), calculate the ending balance in the investment account and any related investment income accounts. (If an answer is zero, please enter 0. Do not leave any fields blank.) Long-term investments $ Dividend Income Unrealized gain on long-term investments e Textbook and Media List of Accounts Save for Later Attempts: 0 of 1 used Submit