Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $5,005,900 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets Long-term assets Other assets $2,941,600 3,897,400 766,300 Current liabilities 1,565,300 Common stock, $20 par value 1,992,100 1,894,100 1,629,800 Other contributed capital Retained earnings Additional data on Singer Company for the four years following the purchase are: Net income (loss) 2011 $1,995,300 Cash dividends paid, 12/30 499,500 2012 $475,300 499,500 2013 2014 ($178,400) 499,500 ($326,600) 499,500 Prepare journal entries under each of the following methods to record the purchase and all investment-related subsequent events on the books of Perelli Company for the four years, assuming that any excess of purchase price over equity acquired was attributable solely to an excess of market over book values of depreciable assets (with a remaining life of 15 years). (Assume straight-line depreciation.)