P2-4 (25 minutes, medium) Harry Inc., a publicly traded company, purchased 1,000 shares, constituting a 40% ownership interest, in Sally Inc. on January 1, 20x1, for $160,000. Harry uses the cost method to record its investment in Sally. Harry Inc.'s income under the cost basis for 20X2 is $100,000. Sally's income per its separate-entity financial statements is $20,000, and it paid a total dividend of $15,000 in 20X1. Both companies have the same year-end. At year-end, each share of Sally was trading at $100 in the market. a. Required Based on the above information, calculate/show (1) journal entries made by Harry in its books relating to its investment in Sally, and (2) the balance in its investment in the Sally account at year-end, assuming that Harry treats its investment in Sally as (i) a FVTPL and alternatively as (ii) a FVTOCI investment. b. Now assume that Harry changed its mind at year-end and has decided to use the equity method to record and report its investment in Sally. Calculate/show the (1) journal entries made by Harry in its books relating to its investment in Sally, (2) total income of Harry for the year, and (3) balance in its investment in the Sally account at year-end