Exercise 2 (10 Points) The comparative income statement of X-File Corporation is provided for December 31, 2020 and 2019. 2020 2019 Net sales $620,000 $500,000 Cost of goods sold 450,000 400,000 Operating expenses 54,000 40,000 Instructions: Prepare a horizontal analysis comparative Income statement data for X-File Corporation using 2019 as a base year. Show the dollar amounts of increase or decrease and the percent of change. Exercise 3 (15Points) Godfrey Corporation obtained significant influence over Sergel Company by buying 40% of Sergei's 400,000 outstanding shares of common stock at a cost of $15 per share on January 1, 2019. On June 30, Sergel Company declared and paid a cash dividend of $250,000 on their shares outstanding. On December 31, Sergel's reported net income was $750,000. Instructions: Prepare all necessary journal entries for Godfrey Corporation Date Title and Explanation Debit Credit