PARTA On January 1, Year 5, Anderson Corporation pald $864,000 for 27,000 (20%) of the outstanding shares of Carter Inc. The Investment was considered to be one of significant Influence. In Year 5. Carter reported profit of $102,000; In Year 6. Its profit was $112,000. Dividends paid were $67,000 in each of the two years. Required: Calculate the balance in Anderson's Investment account as at December 31, Year 6. Balance in Anderson's Investment account 880000 PART B Now assume that on December 31, Year 6, Anderson lost its ability to significantly influence the operating, Investing, and financing decisions for Carter when another party obtained sufficient shares in the open market to obtain control over Carter. Accordingly, the Investment In Carter was reclassified as a FVTPL Investment. The falr value of the Carter shares was $42 per share on this date. In Year 7, Carter reported profit of $122,000 and paid dividends of $57,000. On December 31, Year 7, Anderson sold its Investment in Carter for $44 per share. Required: (a) Prepare the Joumal entry at December 31, Year 6, to reclassify the investment from significant influence to FVTPL. Debit Credit General Journal (Click to select) Unrealized gain on FVTPL investment (b) Prepare all Journal entries for Year 7 related to Anderson's Investment in Carter. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet Record the receipt of dividend in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Investment in Carter Unrealized gain on FVTPL investment Record entry Clear entry View general journal (b) Prepare all journal entries for Year 7 related to Anderson's Investment in Carter. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet