Springfield Limited has a total of 180,000 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. Springfield reported net income of $572,000 for the year ended September 30, 2021, and CT received a $0.24-per-share dividend on that date. Springfields shares were trading at $53 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 23,400 Springfield common shares. Situation 2: CT purchased 68,400 Springfield common shares. Situation 3: CT purchased 180,000 Springfield common shares. 1. For situation 1, is it likely that CT has significant influence over the investee? If it does not, 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 has significant influence, use the equity method to record these transactions. 2. From the journal entries prepared in (1), calculate the ending balance in the investment account and any related investment income accounts Long-term investments Dividend Income Unrealized gain on long-term investments