On January 1, 2022, Coke purchased 300,000 shares of Pepsi's 1,000,000 shares of outstanding common shares for $9,800,000. Pepsi's total net worth or book value was $32,000,000 at the date of Coke's investment. Pepsi declared and paid dividends at June 30, 2022 of $1,000,000, and at December 31, 2022 of $2,000,000. Pepsi reported net income of $4,000,000. On December 31, 2022, the market value of Pepsi's common share was $38 per share. Required: 1. Prepare the journal entries for Coke for 2022, assuming that Coke cannot exercise significant influence over Pepsi. The securities should be classified as Available-for- Sale. 2. Prepare the journal entries for Coke for 2022, assuming that Coke can exercise significant influence over Pepsi. 3. At what amount does Coke report this investment in securities on the balance sheet under each of these methods at December 31, 2022? What is the total net income reported by Coke in 2022 under each of these methods by Coke? 1. ASSUMING COKE CANNOT EXERCISE SIGNIFICANT INFLUENCE (i.e., AVAILABLE FOR SALE)