On January 1, Year 5, Blake Corporation purchased 25% of the outstanding common shares of Stergis Limited for $1,950,000. The following relates to Stergis since the acquisition date: Other Comprehensive Income $11,800 31,200 Year Year 5 Year 6 Net Income $ 54,600 156,000 Required: (a) Assume that Blake is a public company and the number of shares held by Blake is enough to give it significant influence over Stergis. Prepare all the journal entries that Blake should make regarding this investment in Year 5 and Year 6. Date January 1, Year 5 December 31, Year 5 General Journal (Click to select) Dividends Paid $78,000 78,000 (Click to select) To record purchase of 25% of Stergis. (Click to select) (Click to select) (Click to select) To record 25% of Stergis's Year 5 net income. (Click to select) To record 25% of Stergis's Year 5 OCI (Click to select) + + (Click to select) To record 25% of Stergis's Year 5 dividends. Debit Credit December 31, Year 6 Date January 1, Year 5 December 31, Year 5 (Click to select) December 31, Year 6 (Click to select) To record 25% of Stergis's Year 6 net income. (Click to select) (Click to select) To record 25% of Stergis's Year 6 OCI (Click to select) (b) Assume that Blake is a private company. Even though it has significant influence, it chose to use the cost method to account for its investment. Prepare all the journal entries that Blake should make regarding this investment in Year 5 and Year 6. General Journal (Click to select) To record 25% of Stergis's Year 6 dividends. (Click to select) + (Click to select) To record purchase of 25% of Stergis. (Click to select) (Click to select) To record 25% of Stergis's Year 5 dividends* (Click to select) (Click to select) To record 25% of Stergis's Year 6 dividends. Debit Credit