i _d 20% A 3:34 PM Felicia Company acquired 21,000 of the 60,000 shares of outstanding common stock of Nueces Corporation as a long-term investment. The annual accounting period for both companies ends December 31. The following transactions occurred during the year: Jan. 10 Purchased 21,000 shares ot Nueces common stock at S12 per share. Dec. 31 Nueces Corporation reported net Income ot $52.000. Dec. 3 Nueces Corporatlon declared and pald a cash dlvicend o1 S0.60 per share. Dec. 31Determlned the talr value of Nueces stock to be $11 per share 2.00 polnts Required: 1. What accounting method should the coripany use? The consolidation method. The fair value method for available-for-sale securities. The fair value method for trading securities The equity method References Multiple Choice Difficulty: 3 Hard 2.00 points 2. Prepare the journal entries for each of these transactions. (If no entry Is required for a transaction/event, select 'No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the valuation adjustment if the fair value of Nueces' common stock on December 31 is S11 per share. Nple: Erilcr bits brla: credits Date General Journal Debit Credit Dec 31