Larry's acquired 10 % of the voting common stock of Cat Company in 1/1/2018 by paying $12,000 in cash. Choco uses the fair value method to account for its investment and recorded as available for sales security. Cat Company has the book value of net assets of $100,000. During 2018, Cat had a net income of $85,000, paid dividends of $60,000. The fair market value of Cat in 1/1/2018 was $120,000 and in 12/31/2018, it was $132,000.

1) What is the journal entry regarding net income earned by Cat in 12/31/2018? (1pt)

Accounts	Dr.	Cr.

2) What is the journal entry regarding dividends paid by Cat in 12/31/2018? (2pts)

Accounts	Dr.	Cr.

3) What is the journal entry regarding changes in fair value of Cat in 12/31/2018? (2pts)

Accounts	Dr.	Cr.

4) What is the balance in the investment account as of 12/31/2018? (2pts)