Exercise 17-16 Teal Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,127,000 for 49,000 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 $781,000 for 2021. The fair value of Kulikowski's stock was $26 per share at December 31, 2021. Assume that the security is a trading security. Your answer is correct. Prepare the journal entries for Teal Inc. for 2020 and 2021, assuming that Teal 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 1127000 cash 1127000 TJune 30, 2021 T Dividend Revenue 44100 2 Dec. 31, 2021 cash 44100 44100 T Dividend Revenue (To record dividend.) Fair Value Adjustment 1470001 2 1 Unrealized Holding Gair 147000 Your answer is partially correct. Try again. Prepare the journal entries for Teal Inc. for 2020 and 2021, assuming that Teal 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 TDec. 31, 2020 ITEquity Investments 1127000 Cash 1127000 Pune 30, 2021 v Tcash 44100 T Equity Investments 44100 TDec. 31, 2021 Cash 44100 44100 T Equity Investments (To record dividend.) Equity Investments Fair Value Adjustment 156200 (To record revenue.) x Your answer is incorrect. Try again. 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)