On January 1, 2020, Alda Corporation purchased 30% of the 66,000 outstanding common shares of Potter Corporation at $17 per share as a long-term investment. On the date of purchase, the book value and the fair value of the net assets of Potter Corporation were equal. During the year, Potter Corporation reported net income of $52,800 and declared and paid dividends of $17,600. As of December 31, 2020, common shares of Potter Corporation were trading at $20 per share. Required: Show all calculations and use proper format. a. Assume that Alda Corporation had significant influence over Potter Corporation. Prepare the entries for 2020 to record the purchase of the investment, the receipt of declared dividends, and the proportionate share of net income. b. Assume that Alda Corporation did not have significant influence over Potter Corporation. Record the entries in 2020 to record the purchase of the investment, the receipt of declared dividends, and the fair value adjustment. c. Indicate the amount of income that would be reported on the 2020 income statement and the investment balance on the 2020 year-end balance sheet under requirement (a). d. Indicate the amount of income that would be reported on the 2020 income statement and the investment balance on the 2020 year-end balance sheet under requirement (b). e. Briefly summarize the logic behind the different accounting treatment under the two methods, i.e., why are they are different