On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,984,000 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following:

Current assets		$2,930,300
Long-term assets		3,855,600
Other assets		758,500
Current liabilities		1,569,900
Common stock, $20 par value		2,009,700
Other contributed capital		1,877,800
Retained earnings		1,633,700

Additional data on Singer Company for the four years following the purchase are:

		2011		2012		2013			2014
Net income (loss)		$2,016,000		$480,500		($179,200	)		($323,200	)
Cash dividends paid, 12/30		501,000		501,000		501,000			501,000

Prepare journal entries under each of the following methods to record the purchase and all investment-related subsequent events on the books of Perelli Company for the four years, assuming that any excess of purchase price over equity acquired was attributable solely to an excess of market over book values of depreciable assets (with a remaining life of 15 years). (Assume straight-line depreciation.)

(a)

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Perelli uses the cost method to account for its investment in Singer. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2011
	(To record the investment)
	(To record dividend income)
2012
2013
2014