Question 6 of 8 -11 II! Cullumber Corp.was a 30% owner of Riverbed Company, holding 222,000 shares of Riverbed's common stock on December 31, 2019. The investment account had the following entries. 1/1/18 Cost 12/31/18 Share of income 12/31/19 Share of income Investment in Riverbed $3,160,000 12/6/18 Dividend received 410,000 12/5/19 Dividend received 490,000 $150,000 220,000 On January 2, 2020, Cullumber sold 111,000 shares of Riverbed for $3,460,000, thereby losing its significant influence. During the year 2020, Riverbed experienced the following results of operations and paid the following dividends to Cullumber. Riverbed Income (Loss) $310,000 Dividends Paid to Cullumber $48,000 2020 At December 31, 2020, the fair value of Riverbed shares held by Cullumber is $1,940,000. This is the first reporting date since the January 2 sale. (b) Compute the carrying amount of the investment in Riverbed as of December 31, 2020 (prior to any fair value adjustment). Carrying amount $ January 2 sale. (b) Compute the carrying amount of the investment in Riverbed as of December 31, 2020 (prior to any fair value adjustment). Carrying amount $ (c) Prepare the adjusting entry on December 31, 2020, applying the fair value method to Cullumber's long-term investment in Riverbed Company securities. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 e Textbook and Media List of Accounts Save for Later Last saved 1 hour ago. Attempts: 0 of 3 used Submit