Problem 5: On June 1, 2020, Leon Company paid $225,000 to purchase 35% of the stock in Caity Company. On December 15, Caity Company paid out $120,000 in dividends to its shareholders and reported net income of $201,500. On December 31, Leon's year end, the investment had a fair market value of $240,000. Identify the classification of the investment (insignifiant, significant, or controlling influence) and prepare the journal entries to be recorded by Leon Company in 2020