Twinkle Twinkle, Inc. purchased 20,000 shares of Little Star Corporation on January 1, 2019 for $10 per share. Little Star Corporation declared and paid a cash dividend of $0.40 per share in 2019 and $0.45 per share in 2020. Twinkle Twinkle, Inc. obtained the financial statements of Little Star Corporation, and determined their share of reported net income was $32,000 and $36,000 for 2019 and 2020, respectively. The market price of Little Star Corporation's stock was $11 per share and $12 per share on 12/31/2019 and 12/31/2020, respectively. Required: 1. Prepare all journal entries for the above transactions, assuming Twinkle Twinkle, Inc. has significant influence over the operations of Little Star Corporation. 2. Prepare all journal entries for the above transactions, assuming Twinkle Twinkle, Inc. does not have significant influence over the operations of Little Star Corporation and (a) the fair value is readily determinable, and (b) the fair value is NOT readily determinable. Complete the following schedule. Indicate which method of accounting for investments should be used and show what would have been reported on the December 31, 2019 financial statements. Prepare the Statement of Cash Flows under both the direct and indirect method. Significant Influence No Significant Influence FV Determinable FV NOT Determinable Method of Accounting Balance Sheet Income Statement Statement of Comprehensive Income Statement of Cash Flows