Splish Steven Inc. acquired 20% of the outstanding common stock of Theresa Sheridan Inc. on December 31, 2025. The purchase price was $1,053,400 for 45,800 shares. Sheridan Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2026. Sheridan reported net income of $742,000 for 2026. The fair value of Sheridan's stock was $26 per share at December 31, 2026. Assume that the security is a trading security. (a) Your answer is correct. Prepare the journal entries for Splish Steven Inc. for 2025 and 2026, assuming that Steven cannot exercise significant influence over Sheridan. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 31, 2025 Equity Investments Cash e30, 2026 Cash Dividend Revenue 31, 2026 Cash Dividend Revenue (To record dividend.) Fair Value Adjustment Unrealized Holding Gain or Loss-Income (To record fair value.) Debit 1053400 36640 36640 137400 Credit 1053400 36640 36640 137400 (b) Your answer is correct. Prepare the journal entries for Splish Steven Inc. for 2025 and 2026, assuming that Steven can exercise significant influence over Sheridan. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation 2025 Equity Investments Cash Cash ), 2026 Cash Equity Investments 2026 Cash Equity Investments (To record dividend.) Equity Investments Investment Income (To record revenue.) Debit Credit 1053400 36640 36640 148400 1053400 36640 36640 148400 (c) Your answer is partially correct. At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2026? What is the total net income reported in 2026 under each of these methods? Investment amount (balance sheet) Dividend revenue (income statement) Unrealized holding gain (income statement) Investment income (income statement) Toythook and Media Fair Value Method 137400 36640 36640 Equity Method 0 148400