Exercise 22-23 Your answer is partially correct. Ty again Dan Aykroyd Corp. was a 30% owner of Steve Martin Company, holding 210,000 shares of Martin's common stock on December 31, 2013. The investment account had the following entries Investment in Martin 1/1/12 Cost 12/31/12 Share of income 12/31/13 Share of income $150,000 240,000 $3,180,000 12/6/12 Dividend received 390,000 12/5/13 Dividend received 510,000 On January 2, 2014, Aykroyd sold 126,000 shares of Martin for $3,440,000, thereby losing its significant influence. During the year 2014, Martin experienced the following results of operations and paid the following dividends to Aykroyd Martin Income (Loss) Dividends Paid to Aykroyd 2014 At December 31, 2014, the fair value of Martin shares held by Aykroyd is $1,570,000. This is the first reporting date since the January 2 sale (b) Compute the carrying amount in Martin as of December 31, 2014 (prior to any fair value adjustment) Carrying amount $300,000 $50,400 6150000 (c) Prepare the adjusting entry on December 31, 2014, applying the fair value method to Aykroyd's long-term investment in Martin Company's securities. (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.)