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On January 1, 2019, Presto Corporation purchased, as a long-term investment, 5,000 shares of the outstanding voting common stock of Shazam Corporation at $30 per

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On January 1, 2019, Presto Corporation purchased, as a long-term investment, 5,000 shares of the outstanding voting common stock of Shazam Corporation at $30 per share. During 2019, the following events occurred at Shazam Corporation: Assume two independent scenarios: A. The 5,000 shares purchased represent a 10% of the total voting common shares of Shazam. B. The 5,000 shares purchased represent a 40% of the total voting common shares of Shazam. For scenario A, prepare the journal entries: 1. To record the acquisition (purchase) of the investment shares. 2. To recognize net income for 2019. 3. To record cash dividend declared and received. 4. To record any adjustment to market price of stock at year-end. For scenario B, prepare the journal entries: 1. To record the acquisition (purchase) of the investment shares. 2. To recognize net income for 2019. 3. To record cash dividend declared and received. 4. To record any adjustment to market price of stock at year-end

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