Sunland Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,320,800 for 50,800 shares. Kulikowski Inc. declared and paid an $0.90 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $755,000 for 2021. The fair value of Kulikowskis stock was $29 per share at December 31, 2021. Assume that the security is a trading security.

Sunland Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,320,800 for 50,800 shares. Kulikowski Inc, declared and paid an $0.90 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $755,000 for 2021. The fair value of Kulikowski's stock was $29 per share at December 31, 2021. Assume that the security is a trading security. Your answer is correct. Prepare the journal entries for Sunland Inc. for 2020 and 2021, assuming that Sunland cannot exercise significant influence over Kulikowski. (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.) Date Account Titles and Explanation Debit Credit TDec. 31, 2020 Equity Investments 1320800 T Cash 1320800 TJune 30, 2021 TCash 45720 Dividend Revenue 45720 Dec. 31, 2021 Cash 45720 45720 1 Dividend Revenue (To record dividend.) Fair Value Adjustment 152400 . . . . . Prepare the journal entries for Sunland Inc. for 2020 and 2021, assuming that Sunland can exercise significant influence over Kulikowski. (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.) Date Account Titles and Explanation Debit Credit TDec. 31, 2020 Equity Investments 1320800 Cash 1320800 20 TJune 30, 2021 Cash 45720 T EVVVVVV Equity Investments 45720 Dec. 31, 2021 Cash 45720 45720 Equity Investments (To record dividend.) Equity Investments 1510001 Investment Income 151000 (To record revenue.) Your answer is partially correct. Try again. At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2021? What is the total net income reported in 2021 under each of these methods? Fair Value Method Equity Method 1380360 Investment amount balance sheet) 1473200 Dividend revenue (income statement) Unrealized holding gain (income statement) T 152400 Investment income income statement) 151000 Click if you would like to Show Work for this question: Open Show Work