Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2025. The purchase price was $1,200,000 for 50,000 shares. Kullikowiski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2026. Kulikowski reported net income of $730,000 for 2026. The fair value of Kulikowski's stock was $27 per share at December 31, 2026. Assume that the security is a trading security. Your answer is partially correct. Prepare the journal entries for Jaycie Phelps Inc. for 2025 and 2026, assuming that Phelps cannot exercise significant influence over Kulikowski. (List all debit entries before credit entries. 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 Ofor the amounts. Record journal entries in the order presented in the problem.) Debt Investments Cash Cash Dividend Revenue Cash Dividend Revenue (To record dividend.) Fair Value Adjustment Prepare the journal entries for Jaycie Phelps inc. for 2025 and 2026 , assuming that Phelps can exercise significant influence over Kulikowski. (List all debit entries before credit entries. 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 ofor the amounts. Record journal entries in the order presented in the problem.) Equity Investments Cash Equity Investments (To record dividend.) Equity Investments Dividend Revenue (To record revenue.) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31 , 2026? What is the total net income reported in 2026 under each of these methods