IRCES Exercise 17-16 Pina Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc, on December 31, 2017. The purchase price was $1,111,200 for 46,300 shares Kulikowski Inc, declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2018 Kulikowski reported net income of $78,000 for 2018. The fair value of Kulikowski's stock was $27 per share at December 31, 2018 Assume that the security is a trading security Prepare the journal entries for Pina Inc. for 2017 and 2018, assuming that Pina cannot exercise significant influence over Kulikowski (Credit accountries 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 amounts.) for the Debit Credit Date Dec 31, 2017 Account Titles and Explanation Equity Investments Cash 1111200 June 30, 2018 0 Cash 37000 Dividend Revenue Dec 31, 2018 Cash 37000 Dividend avenue Fair Value Adjustment 138900 Unrealized Holding Gain or Loss Equity 138900 (to record OURCES Prepare the journal entries for Pina Inc. for 2017 and 2018, assuming that Pina can exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If ne entry is required, select "No Entry for the account titles and enter amounts.) for the Date Account Titles and Explanation Debit Credit Dec 31, 2017 : by Study June 30, 2018 : Dec 31, 2018 : (To record dividend) to record revenue) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2018? What is the total net income reported in 2018 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) Question Attempts of 4 used