Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2013. The purchase price was $1,200,000for50,000shares. Kulikowski Inc. declared and paid an $0.85per share cash dividend on June 30 and on December 31, 2014. Kulikowski reported net income of $730,000for 2014. The fair value of Kulikowskis stock was $27per share at December 31, 2014.

(a) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps cannot exercise significant influence over Kulikowski. The securities should be classified as available-for-sale. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2013
June 30, 2014
Dec. 31, 2014
(To record dividend.)
(To record fair value.)

(b) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps can exercise significant influence over Kulikowski. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2013
June 30, 2014
Dec. 31, 2014
(To record dividend.)
(To record revenue.)

(c) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2014? What is the total net income reported in 2014 under each of these methods?

Fair Value Method	Equity Method
Investment amount	$	$
Dividend revenue
Investment income (income statement)