Required information [The following information applies to the questions displayed below.] Company T had 25,000 outstanding shares of common stock, par value $12 per share. On January 1 of the current year, Company P purchased some of Company T's shares as a long-term investment at $21 per share. At the end of the current. year, Company T reported the following: income, $46,000, and cash dividends declared during the year, $17,500. The fair value of Company T stock at the end of the current year was $18 per share. Required: 1. For each of the following situations, identify the method of accounting that Company P should use. Required information [The following information applies to the questions displayed below] Company T had 25,000 outstanding shares of common stock, par value $12 per share. On January 1 of the current year, Company P purchased some of Company T's shares as a long-term investment at $21 per share. At the end of the current year, Company T reported the following: income, $46,000, and cash dividends declared during the year, $17,500. The fair value of Company T stock at the end of the current year was $18 per share. Required: 1. For each of the following situations, identify the method of accounting that Company P should use. 2-a. Prepare the journal entries for Company P at the dates indicated assuming 3,500 shares of Company T were purchased. Assume the investment will be held long term. 2-b. Prepare the joumal entries for Company P at the dates indicated assuming 7,500 shares of Company T were purchased. Assume the investment will be held long term. 3-a. Complete the following schedule to show the separate amounts that should be reported on the current year's balance sheet of Company P : 3-b. Complete the following schedule to show the separate amounts that should be reported on the current year's income statement of Company P. Complete this question by entering your answers in the tabs below. Prepare the journal entries for Company P at the dates indicated assuming 3,500 shares of Company T were purchased. Assume the investment will be held long term. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Iournal entrv worksheet Complete this question by entering your answers in the tabs below. Prepare the joumal entries for Company P at the dates indicated assuming 3,500 shares of Company T were purchased. Assume the investment will be held long term. Note: If no entry is required for-a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 5 Recognize the income reported by Company T for current year. Note: Enter debits before credits Complete this question by entering your answers in the tabs below. Prepare the journal entries for Company P at the dates indicated assuming 3,500 shares of Company T were purchased. Assume the investment will be held long term. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Note: Enter debits before credits: repare the joumal entries for Company P at the dates indicated assuming 3,500 shares of Company T were purchased. Assume the nvestment will be held long term. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the dividends paid by Company T. Note: Enter debuts before credits. of Company P: Complete this question by entering your answers in the tabs below. Prepare the journal entries for Company P at the dates indicated assuming 3,500 shares of Company T were purchased. Assume the investment will be held long term. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 1 Recognize the fair value of the investment at year end. Note: Enter debits before credits. Journal entry worksheet Journal entry worksheet 5 Recognize the income reported by Company T for current year. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare the journal entries for Company P at the dates indicated assuming 7,500 shares of Company T were purchased. Assume the investment will be held long term. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the dividends declared by Company T. Note: Enter debits before credits. Prepare the journal entries for Company P at the dates indicated assuming 7,500 shares of Company T were purchased. Assume investment will be held long term. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the dividends paid by Company T. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare the joumal entries for Company P at the dates indicated assuming 7,500 shares of Company T were purchased. Assume the investment will be held long term. Note: If no eritry is required for a transaction/event, select "No journal entry required" in the first account fleid. Journal entry worksheet Recognize the fair value effect at the end of current year. Note: Enter debits before credits