SunInc. has obtained significant influence over MoonCorp by buying 30% of MoonCorp's 40,000 outstanding shares. SunInc purchased the shares at $12 per share on January 1, 2021. On July 1, MoonCorp. declared and paid cash dividends of $52,000 to all stockholders. At the end of the year on December 31, 2021, MoonCorp. reported Net Income of $160,000 for the year. The market price of MoonCorp was $14 per share on December 31, 2021.

What is the journal entry for SunInc. on December 31, 2021?

a)

Cash	15,600
Equity Investments		15,600

b)

Equity Investments	48,000
Investment Income		48,000

c)

Fair Value Adjustment	24,000
Unrealized Holding Gain or Loss-Income		24,000

d)	No entry is needed.