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Exercise 17-16 Larkspur Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc, on December 31, 2017. The purchase price was $1,031,800 for

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Exercise 17-16 Larkspur Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc, on December 31, 2017. The purchase price was $1,031,800 for 46,900 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2018. Kulikowski reported net income of $714,000 for 2018. The fair value of Kulikowski's stock was $25 per share at December 31, 2018. Assume that the security is a trading security. Prepare the journal entries for Larkspur Inc. for 2017 and 2018, assuming that Larkspur cannot exercise significant influence over Kulikowski. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit (To record dividend.) To record fair value.) Account Titles and Explanation Debit Credit 4 " (To record dividend.) (To record fair value.) Prepare the journal entries for Larksnur Ine for 2017 and 2010 - Prepare the journal entries for Larkspur Inc. for 2017 and 2018, assuming that Larkspur can exercise significant influence over Kulikowski. (Credit account titles automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter amounts.) Date Account Titles and Explanation Debit Credit (To record dividend.) (To record revenue.) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2018? What is the total net income reported in 2018 under each of these methods? Fair Value Method Equity Method Investment amount (balance sheet) Dividend revenue (income statement) Unrealized holding gain (Income statement) Investment income income statement)

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