On January 1, 2020, Rae Company purchased 8,000 of the 40,000 shares outstanding of common stock (par $1) of Sundem Corporation for $80,000 cash. Assume that the fair value and book value of all net assets of Sundem were the same at that time. This is the only long-term equity investment held and the ownership of Sundem shares represents a significant interest. The accounting periods for both Rae and Sundem end on December 31.

Sundem Corporation Year 2020
Income reported for 2020	$40,000
Cash dividend per share declared and paid on December 15, 2020	$1.50
Market price per share of stock, December 31, 2020	$12.00

Year 2021
Income reported for 2021	$50,000
Cash dividend per share declared and paid on December 15, 2021	$1.50
Market price per share of stock, December 31, 2021	$11.00

a. Provide all of the entries required for Rae Company for 2020 and 2021 including the investment purchase, receipt of declared dividends, and year-end adjusting entries. Date Account Name Dr. Cr. Jan. 1, 2020 0. Dec. 15, 2020 Dec. 31, 2020 Dec. 15, 2021 Dec. 31, 2021 O o O o o o o o o O