On January 1, 2020, President Corporation purchased 120,000 common shares of Senator Ltd. for $24.50 per share. At the time, Senator had 600,000 shares outstanding. At the time of purchase, Senator's equipment was undervalued by $88,000 and had a remaining useful life of 11 years. Both companies have a December 31 year-end. On May 31, Senator declared and paid a cash dividend of $0.25 per share. On December 31, 2020, Senator reported a net income of $360,000. The shares in Senator were trading at $21.75 per share on that day. REQUIRED: a) Assume that the investment in Senator does not represent significant influence, and that President classifies the investment as FV-NI. Prepare the necessary journal entries on the books of President Corporation to record the above transactions. b) Assume that the investment in Senator does represent significant influence. Prepare the necessary journal entries on the books of President Corporation to record the above transactions. Note: Round all currency amounts to the nearest whole amount (i.e. no decimals)