On 1/1/20, Grape Company purchased 20% of Juice Company outstanding stock for $1,000,000. At the date of purchase, Juice Companys total common stockholders equity was $5,000,000. Assume no fair value/book value difference for Juice Company stockholders equity exists at 1/1/20.

Juice Company paid $500,000 in dividends during 2020 and reported net income of $750,000. Juices common stock is selling for $6,000,000 at the end of 2020.

For all parts below, use $XXX,XXX format for your answer.

a. If Grapes intent for the purchase is to invest excess cash for a shorter period of time,

What would be included as the total dollar amount of Investment In Juice on Grapes balance sheet at 12/31/20?

What would be the dollar amount included in Grapes stockholders equity related to Grapes Investment In Juice on 12/31/20?

b. If Grapes intent for the purchase is to be able to influence Juice financing and operating decisions since it can now have a seat on Juices Board of Directors,

What would be included as the total dollar amount of Grapes Investment In Juice asset on Grapes balance sheet 12/31/20?

What dollar amount would be included in Grapes stockholders equity related to this Investment in Juice on 12/31/20?