On January 1, 2021. Cam Co. bought 20% of the outstanding common stock of Lake Co. for $150,000. On that date, Lake's net assets had a fair value of $450,000 and a book value of $400,000. The difference was attributable to the fair value of Lake's buildings (remaining life of 5 years) and land exceeding book value, each accounting for half of the difference. For 2021. Lake's net income was $75,000 and Lake declared and paid cash dividends of $15,000. Cam accounts for this investment by the equity method. At the end of 2021, the fair value of the investment is $175.000 Identify the following statements that are TRUE regarding Cam's accounting for the investment of the $150,000 investment in Lake, $70,000 pertains to goodwill . The journal entry for Lake's declared and paid cash dividends includes a credit to Dividend Revenue for $3,000. The journal entry for Lake's net income includes a credit to Investment Revenue for $15.000 The journal entry for Lake's net income includes a debit to Investment in Equity Affiliate for $15,000. The journal entry for Lake's declared and paid cash dividends includes a credit to Investment in Equity Affiliate for $3,000. The book value of the Investment in Equity Affiliate at the end of 2021 is $175.000 The journal entry for the depreciation adjustment includes a debit to Investment Revenue for $1.000. The journal entry for the depreciation adjustment includes a credit to Investment in Equity Affiliate for $1,000. Walt Co. offers a stock option plan to its managers. On January 1, 2021. options were granted for 400,000 $1 par common shares. The exercise price is $10 per share, the market price on the grant date. Options cannot be exercised prior to January 1, 2023 and expire December 31, 2027. The fair value of the 400.000 options when granted is $3 per option On March 12, 2023, 300,000 options were exercised when the market price is $15 per share. On December 31, 2027, the remaining 100,000 options expire without being exercised. Identify the following statements that are TRUE regarding Walt's accounting for the options. The journal entry on March 12, 2023 would include a credit to Paid-in Capital - Excess of Par for $4,200,000. The journal entry on December 31, 2027 would include a debit to Paid-in Capital - Stock Options for $300,000 and a credit to Paid-in Capital - Expiration of Stock Options for $300,000. The journal entry on December 31, 2021 would include a debit to Compensation Expense for $600,000 and a credit to Paid-in Capital - Stock Options for $600,000