On 1 January 20X5, Zan Company purchased 8,250 of the 33,000 outstanding common shares of Woo Computer Corp. (WC) for $159,000 cash. Zan had significant influence as a result of the investment and will use the equity method to account for the investment. On 1 January 20X5, the statement of financial position of WC showed the following book values (summarized): Assets not subject to depreciation Assets subject to depreciation (net) Liabilities Common shares Retained earnings $ 198,900 159, eee 52,800 237,700 66,000 "Fair value, $225,600, difference relates to land. **Fair value, $185,700, estimated remaining life, 5 years. Assume there is no impairment of goodwill. Additional subsequent data on WC are as follows: Earnings Cash dividends declared and paid Fair value per share 20x5 20x6 $ 52,800 $ 64,800 43,800 53,800 $ 21 $ 42 Required: 1-1. Provide the investor's entries or give the required information for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Entry at date of acquisition c Entries at 31 December 20X5 to recognize investment revenue and dividends. d. Entries at 31 December 20X6 to recognize investment revenue and dividends. Journal entry worksheet 2. 1 3 4 5 Record the Investment revenue for 20X5. Note: Enter debits before credits. Debit Credit Transaction General Journal C-1. Record entry Clear entry View general journal 1-2.Indicate the amount of goodwill purchased. Goodwill purchased 2. Are any entries needed to recognize a writedown to fair value at the end of 20x5 or 20x6? Yes No 3. Reconstruct the investment account, showing the opening and closing balances and all changes in the account. Investment Account (Equity Method) Aca Bal 4-1. How much investment revenue would be reported each year if the cost method was used? Investment revenue 20X5 20X6 4-2. What would be the balance in the investment account? Balance in the investment account