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Question 4 ( 3 points) A: On January 1st, 2022, Vehicle Inc. bought 5% of the outstanding stock of Bicycle Inc. for $1,000,000. Bicycle Inc.

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Question 4 ( 3 points) A: On January 1st, 2022, Vehicle Inc. bought 5% of the outstanding stock of Bicycle Inc. for $1,000,000. Bicycle Inc. paid a dividend of $100,000 to all shareholders on December 31 st, 2022. Additionally, as of December 31 st, 2022, Bicycle Inc. reported Net Income of $2,000,000. Record all iournal entries of Vehicle Inc. with respect to Bicycle Inc.'s stock for the vear 2022. What method of accounting for equity investments will Vehicle Inc. use? B: On January Ist, 2022, Vehicle Inc. bought 30% of the outstanding stock of Bicycle Inc. for $6,000,000. Bicycle Inc. also paid a dividend of $100,000 to all shareholders on December 31st, 2022. Additionally, as of December 31st, 2022, Bicycle Inc. reported Net Income of $2,000,000. Record all iournal entries of Vehicle Inc. with respect to Bicycle Inc.'s stock for the vear 2022. What method f accounting for equity investments will Vehicle Inc, use

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