Tomato, Inc., purchased 10% of Toast Company for $1,000,000 on January 1, 2019. Toast recognized a total of $520,000 net income during 2019, paid $43,000 of dividends to Tomato during 2019, and at December 31, 2019, the market value of the Toast investment increased to $1,058,000. Required: Prepare the journal entries necessary to account for the Toast investment, under the following independent assumptions:

1) Tomato, Inc. does not have significant influence;

(2) Tomato, Inc. does have significant influence over the operating and financial policies of the investee.