Mike Ltd purchased the outstanding voting shares of Sam Ltd at the beginning of 2009 for $387,000. At the time of purchase, Sam's total stockholders' equity amounted to $475,000. Income and dividend distributions for Sam from 2009 through 2011 are as follows: 2010 2011 2009 Net income (loss) $63,500 Dividend distribution $25,000 $52,500 $(55,000) $35,000 $50,000 Required: Prepare journal entries for Mike Ltd. from the date of purchase through 2011 to account for its investment in Sam Ltd under each of the following assumptions: 1. Cost Method (assume 20% investment) 2. Equity Method (assume 40% investment) 20 Marks 20 Marks