Required information PA-7 (Algo) Comparing Methods to Account for Various Levels of Ownership of Voting Stock LO A-2, A-3 [The following information applies to the questions displayed below.] Surge Corporation had outstanding 110,000 shares of no-par common stock. On January 10 of the current year, Crash Company purchased a block of Surge Company's shares in the open market at $20 per share for long-term investment purposes. At the end of the current year, Surge reported net income of $282,000 and cash dividends of $0.60 per share. At December 31 of the current year, Surge stock was selling at $22 per share. PA-7 Part 2 and Part 3 2-a. Prepare the journal entries for Crash Company at the dates indicated assuming 11,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 2-b. Prepare the journal entries for Crash Company at the dates indicated assuming 44,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 3-a. Show how the long-term investments should be reported on the current year's balance sheet. 3-b. Show how the long-term investments should be reported on the current year's income statement. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 3A Req 3B Prepare the journal entries for Crash Company at the dates indicated assuming 11,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 3 4 5