On January 1, 2020 Gulf Co. purchased 80,000 shares of Bahrain Co. common stock for $700,000 cash granting Gulf 40% interest and the ability to exercise significant influence. The excess value of $80,000 of cost over book value was attributed to goodwill. Bahrain reported net income of $240,000 and declared dividend of $45,000 for the year 2020 and net income of $350,000 and dividend of $90,000 for the year 2021. Distributed evenly over the year. On October 1, 2021 Gulf sold 40,000 of its shares in Bahrain Co. for $12 each but maintains its significant influence with 20% interest. Required: (4 points) 1. Prepare the journal entries to record (please leave a line between entries): a. Gulf investment in Bahrain on January 1, 2020. b. Gulf share of Bahrain income and dividend in 2021. 2. Calculate the resultant gain or loss from the sale of the shares. 3. What is the total effect in the 2021 Gulf Co. income statement, On January 1, 2020 Gulf Co. purchased 80,000 shares of Bahrain Co. common stock for $700,000 cash granting Gulf 40% interest and the ability to exercise significant influence. The excess value of $80,000 of cost over book value was attributed to goodwill. Bahrain reported net income of $240,000 and declared dividend of $45,000 for the year 2020 and net income of $350,000 and dividend of $90,000 for the year 2021. Distributed evenly over the year. On October 1, 2021 Gulf sold 40,000 of its shares in Bahrain Co. for $12 each but maintains its significant influence with 20% interest. Required: (4 points) 1. Prepare the journal entries to record (please leave a line between entries): a. Gulf investment in Bahrain on January 1, 2020. b. Gulf share of Bahrain income and dividend in 2021. 2. Calculate the resultant gain or loss from the sale of the shares. 3. What is the total effect in the 2021 Gulf Co. income statement