Gavin purchased 20% of the stock of Bennett on 12/31/17 Purchase price was $2,400,000 for 50,000 shares. In 2018 the following occurred relating to Bennett: 12/31/18 Bennett's income for 2018 was $3,000,000 On 12/31/18 Bennett stock was selling for $47 per share Required: 1. Prepare journal entries for Gavin for 2017 and 2018 assuming Gavin cannot exercise significant influence over Bennett. 2. Prepare journal entries for Gavin for 2017 and 2018 assuming Gavin can exercise significant influence over Bennett. 3. Under each scenario provide the amount which the investment in Bennet is carried on the Balance Sheet of Gavin at 12/31/18 (Show your work) 4. Provide the amounts and the total affect on Gavin's income statement of these items under each scenario. (Show your work) Joumal Entry explanations are not required. C Fair value method Investments 12/31/18 Equity Method Investments 12/31/18 Income statement Effects: Fair Value Method Equity Method