Question 46 (12 points) Bailey Limited purchased 40,000 common shares of Tiger Corporation for $800,000, as a long- term investment. During the year, Tiger Corporation reported net earnings of $200,000 and paid dividends totaling $90,000. The fair value of the shares on Dec. 31 was $820,000. Instructions: (a) Assuming that the 40,000 shares represent a 10% interest in Tiger Corporation: 1. Prepare the entry to record Bailey's investment in Tiger shares. 2. Prepare any entries that Bailey should make in accounting for its investment in Tiger shares during the year. 3. What is the balance of the investment account on Bailey's books at the end of the year? (b) Assuming that the 40,000 shares represent a 30% interest in Tiger Corporation: 1. Prepare the entry to record Bailey's investment in Tiger shares. 2. Prepare any entries that Bailey should make in accounting for its investment in Tiger shares during the year. 3. What is the balance of the investment account on Bailey's books at the end of the year? You can enter your answer in the blank response area below in the exam OR you can also upload a completed electronic or hand written document file of your choosing (EXCEPT APPLE's .PAGES FORMAT FILES) e.g., Word, Excel, jpg (using your phone or tablet as a camera) or pdf using the 'Add a File' feature, also below in the exam. Paragraph BI U