Surge Corporation had outstanding 120,000 shares of no-par common stock. On January 10 of the current year, Crash Company purchased a block of Surge Company's shares in the open market at $23 per share for long-term investment purposes. At the end of the current year, Surge reported net income of $298,000 and cash dividends of $0.90 per share. At December 31 of the current year, Surge stock was selling at $25 per share. PA-7 Part 2 and Part 3 2-a. Prepare the journal entries for Crash Company at the dates indicated assuming 18,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 2-b. Prepare the journal entries for Crash Company at the dates indicated assuming 42,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 3-a. Show how the long-term investments should be reported on the current year's balance sheet. 3-b. Show how the long-term investments should be reported on the current year's income statement. Req 2A Req 2B Req 3A Req 3B Prepare the journal entries for Crash Company at the dates indicated assu Assume the investment will be held long term. (If no entry is required for first account field.) View transaction list X L... 1 Record the acquisition at January 10. 2 Recognize the income reported by Surge Corporation for current year. Record the dividends declared by Surge Corporation. 4 Record the dividends paid by Surge Corporation. Recognize the fair value effect at the end of current year. Req 2A Req 2B Req Req 3B Prepare the journal entries for Crash Company at the dates indicated assu Assume the investment will be held long term. (If no entry is required for first account field.) View transaction list View journal entry worksheet X 1 Record the acquisition at January 10. 2 Recognize the income reported by Surge Corporation for current year. 3 Record the dividends declared by Surge Corporation. Record the dividends paid by Surge Corporation. 5 Recognize the fair value effect at the end of current year. Req 2A Reg 2B Req 3A Req 3B Show how the long-term investments should be reported on the current CRASH COMPANY Balance Sheet (Partial) At December 31, Current Year Dollar Amounts 18,000 shares 42,000 shares Balance Sheet (noncurrent assets): Investments Investments Req 2A Req 2B Req Req 3B Show how the long-term investments should be reported on the current y should be indicated by a minus sign.) CRASH COMPANY Income Statement (Partial) For the Year Ending December 31, Current Year Dollar Amounts 18,000 shares 42,000 shares Income Statement