Question 4 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 $4,952,000 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets $2,936,400 Long-term assets 3,878,400 Other assets 753,400 Current liabilities 1,555,500 Common stock, $20 par value 2,004,300 Other contributed capital 1,875,800 Retained earnings 1,615,200 Additional data on Singer Company for the four years following the purchase are: Net income (loss) Cash dividends paid, 12/30 2011 2012 2013 2014 $1,994,500 $472,300 ($181,400) ($326,100 ) 496,600 496,600 496,600 496,600 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.) Debit Credit Date Account Titles and Explanation 2011 Investment in Subsidiary 4952000 Cash 4952000 (To record the investment) Cash 446940 446940 Dividend Income (To record dividend income) ) 2012 cash 446940 . Dividend Income 446940 2013 Cash 446940 Dividend Income 446940 2014 Cash 446940 Dividend Income Investment in Subsidiary