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 $4,934,300 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets Long-term assets Other assets Current liabilities Common stock, $20 par value Other contributed capital Retained earnings $2,954,600 3,908,000 757,000 1,553,500 2,010,600 1,844,200 1,609,200 Additional data on Singer Company for the four years following the purchase are: Net income (loss) Cash dividends paid, 12/30 2011 $1,993,900 499,900 2012 $474,400 499,900 2013 ($180,500) 499,900 2014 ($327,100 ) 499,900 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.) (a) Your answer is partially correct. Try again. Perelli uses the cost method to account for its investment in Singer. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2011 2011 Investment in Subsidiary T 4934300 4934300 cash (To record the investment) Tcash 449910 Date Account Titles and Explanation Debit Credit 2011 Investment in Subsidiary 4934300 4934300 cash (To record the investment) Tcash 449910 1 Dividend Income 449910 (To record dividend income) 2012 cash T 449910 1 Dividend Income 449910 2013cash 449910 Dividend Income 449910 2014|cast cash 449910 Investment in Subsidiai 411010 Investment in Subsidiai 38900 SHOW LIST OF ACCOUNTS LINK TO TEXT