On January 1, 2021. Cullumber Company, a public company purchased 40% of the common shares of Triple Titanium Inc. for $700,000. The remaining shares (60%) are held by the family members of the company's founder. Cullumber considers this a strategic investment and a critical step into developing consumer markets. Triple Titanium is currently a supplier to Cullumber Cullumber placed two members on the 10-person board of directors of Triple Titanium and the two members believe they have been influential on the board through the year. Cullumber and Triple Titanium both have December 31 year ends. During 2021, Triple Titanium reported profit of $320,000 and paid total dividends of $70,000. Your Answer Correct Answer (Used) Prepare the following journal entries for Cullumber, assuming significant influence does exist. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) 1 2 The acquisition of the investment Investment revenue and receipt of dividends related to the investment Debit Credit Date Account Titles and explanation 2021 Investment in Associate 700,000 Cash 700.000 (To record purchase of investment.) Cash 2021 28.000 Investment in Associate 28.000 (To record dividend received from associate.) Investment in Associate 2021 120.000 Income from Investment in Associate 128,000 (To record investment income from associate) (c) Your answer is partially correct. During 2022 Triple Titanium reports profit of $240,000 and pays total dividends of $70,000. Prepare the required journal entries related to these transactions on Cullumber's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and entero for the amounts.) Date Account Titles and Explanation Credit Debit 2022 (To record dividend received from associate.) 2022 (To record investment income from associate.)