Required information [The following information applies to the questions displayed below. Lisa Company had outstanding 120,000 shares of common stock. On January 10, 2018, Marg Company purchased a block of these shares in the open market at $21 per share, with the intent of holding the shares for a long time. At the end of 2018, Lisa reported net income of $400,000 and cash dividends of $0.80 per share. At December 31, 2018, Lisa Company stock was selling at $19 per share. Required 1-a. Identify the method of accounting that Marg Company should use for purchasing 16,800 shares (Case A). The Fair Value Method The Equity Method 1-b. ldentify the method of accounting that Marg Company should use for purchasing 48,000 shares (Case B) The Fair Value Method The Equity Method 34 of 4H Next> K Prev 2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 16,800 shares purchased. 2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 48,000 shares purchased 3. Complete the following schedule to show the separate amounts that should be reported on the 2018 financial statements of Marg Company: Complete this question by entering your answers in the tabs b Req 2A Req 2B Req 3 Prepare the journal entries for Marg Company at the dates indicated for Case A: 16,800 shares purchased. (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 2 4. Record the acquisition of 16,800 shares of Lisa Company on January 10 Note: Enter debits before credits. Transaction General Journal Debit Credit Prev 4 of 4I Next 2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 16,800 shares purchased. 2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 48,000 shares purchased. 3. Complete the following schedule to show the separate amounts that should be reported on the 2018 financial statements of Marg Company: Complete this question by entering your answers in the tabs below Req 3 Req 2A Req 2B Prepare the journal entries for Marg Company at the dates indicated for Case B: 48,000 shares purchased. (If no entry is required for a transaction/event, set "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 4 Record the acquisition of 48,000 shares of Lisa Company on January 10. Note: Enter debits before credits. Debit Transaction General Journal Credit K Prev 4of 4 Next 2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 16,800 shares purchased 2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 48,000 shares purchased 3. Complete the following schedule to show the separate amounts that should be reported on the 2018 financial statements of Marg Company: Complete this question by entering your answers in the tabs below. Req 3 Req 2A Req 2B Complete the following schedule to show the separate amounts that should be reported on the 2018 financial statements of Marg Company: (Enter any losses with a minus sign.) Dollar Amounts Case B Case A Balance Sheet: Long-term Assets Marketable Equity Securities Investment in Affiliates Income Statement Dividend Revenue Net Gain (Loss) on Equity Securities Equity in Affiliate Earnings Req 2B Req 3