Exercise 17-16 (Part Level Submission) Ayayai Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $998,800 for 45,400 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $708,000 for 2021. The fair value of Kulikowski's stock was $25 per share at December 31, 2021. Assume that the security is a trading security. (a) Your answer is correct. Prepare the journal entries for Ayayai Inc. for 2020 and 2021, assuming that Ayayai cannot exercise significant influence over Kulikowski. (Credit account titles 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 Dec. 31, 2020 Equity Investments 998800 Cash 998800 Taune 30, 2021 v Cash - 36320 Dividend Revenue 36320 TDec. 31, 2021 TDec. 31, 2021 Cash cash 363201 Dividend Revenue 36320 (b) Prepare the journal entries for Ayayai Inc. for 2020 and 2021, assuming that Ayayai can exercise significant influence over Kulikowski. (Credit account titles 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 revenue.) Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER (c) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2021? What is the total net income reported in 2021 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) Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 5 used