Question 2 (90 points) On January 1, 2020 Pearl Company acquired 20 percent of the common stock of Serpentine Corporation for $400,000, at underlying book value. For the same year, Serpentine reported net income of $60,000. It paid $20,000 dividends during the year. At December 31, 2020, Pearl determined the fair value of the shares of Serpentine to be $397,500. a. Give all journal entries recorded by Pearl with respect to the Investment in Serpentine assuming Pearl uses equity method. (30 points) b. Give all journal entries recorded by Pearl with respect to the Investment in Serpentine assuming Pearl carries securities at fair value method. (30 points) c. What amount would Pearl report as investment in Serpentine at the end of the year, if Pearl used the equity method? (10 points) d. What amount would Pearl report as investment in Serpentine at the end of the year, if Pearl used the fair value method? (10 points) e. What amount would Pearl's investment income for the year, if Pearl used the fair value method? (10 points)