Century Corporation acquired 8,400 common shares of Fidelity Company on January 10, 2003, for $12 per share and acquired 15,000 common shares of Essem Corporation on January 25, 2003, for $22 per share. Fidelity has 60,000 shares of common stock outstanding, and Essem has 50,000 shares outstanding. At December 31, 2003, the following information was obtained SSS about the operations of Fidelity and Essem:

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Net income Dividends paid per share. Market value per share at December 31, 2003 Fidelity Essem $36,000.00 $100,000.00 0.40 1.00 10.00 20.00 Assume that Century Corporation exerted significant influence over the policies of Essem Cor- poration, but influenced the policies of Fidelity Corporation only to a very limited extent. Cen- tury classified its investment in Fidelity as an available-for-sale security. Required: 1. How should Century account for its investments in Essem Corporation? 2. Prepare the journal entries for each investment for the year 2003 using the method or methods you selected in (1).