Runner Limited has a total of 190,000 common shares issued. On October 3, 2020, CT Inc. purchased a block of these shares in the open market at $49 per share to hold as a long-term equity investment. Runner reported net income of $602,000 for the year ended September 30, 2021, and CT received a $0.23-per-share dividend on that date. Runners shares were trading at $52 per share at September 30, 2021. This problem assumes three independent situations related to the accounting for this investment by CT:

Situation 1:		CT purchased 24,700 Runner common shares.
Situation 2:		CT purchased 66,500 Runner common shares.
Situation 3:		CT purchased 190,000 Runner common shares.

1. For situation 2, is it likely that CT has significant influence over the investee? YesNo If it does not have significant influence, record all journal entries relating to the investment for the year ended September 30, 2021, using the fair value through profit or loss model. If CT does have significant influence, use the equity method to record these transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 3, 2020Sept. 30, 2021
Oct. 3, 2020Sept. 30, 2021
	(To record dividends)
Oct. 3, 2020Sept. 30, 2021
	(To record share in profit)

2. From the journal entries prepared in (1), calculate the ending balance in the investment account and any related investment income accounts. (If an answer is zero, please enter 0. Do not leave any fields blank.)

Investments in associates		$
Dividend income
Income from associates
Unrealized gain on long-term investments