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Exercise 17-16 Riverbed Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,170,000 for

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Exercise 17-16 Riverbed Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,170,000 for 46,800 shares. Kulikowski Inc. declared and paid an $0.90 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $802,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Riverbed Inc. for 2020 and 2021, assuming that Riverbed 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 Accent Titles and Explanation Credit Dec 31, 2020 June 30, 2021 Dec 31, 2021 Torced vided) To record fair value SHOW LIST OF ACCOUNTS Prepare the journal entries for Riverbed Inc. for 2020 and 2021, assuming that Riverbed 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 for the amounts.) Account Titles and nation Credit To record dvided) Torced) 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? Equity Method Fair Value 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

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