Question: #2. (Fair Value and Equity Method Compared) Blank Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on December 31,

$\#2. (Fair Value and Equity Method Compared) Blank Co. acquired 25\%$

December 31, 2020. - On December 31, 2020. The purchase price was

\#2. (Fair Value and Equity Method Compared) Blank Co. acquired 25\% of the 500,000 shares of outstanding common stock of Overload Inc. on December 31, 2020. - On December 31, 2020. The purchase price was $3,600,000. - on June 18, 2021, Overload declared and paid $1.20 per share cash dividends. - On November 29, 2021. Overload reported net income of \$1,200,000 for 2021. - At December 31, 2021, the fair value of Overload common stock was $27 per share. CHAP'TER 17 - INVESTMENT - ASSIGNMEN'T - DUE on Oct 5, 2023 @11:59 PM INSTRUCTIONS (a) Prepare the journal entries for Blank Co., assuming that Blank cannot exercise significant influence over Overload. (b) Prepare the journal entries for Blank Co. for, assuming that Blank can exercise significant influence over Overload. \#1. (Equity Securities Entries) On December 31, 2020, InterSteel Inc. provided you with the following information regarding its equity securities: All of the securities were purchased during 2020. During 2021, IntertSteel sold its Lorton Corp. stock for $33,200. The fair value of the stock on December 31, 2021, was: JAK Inc. stock- $47,600; Kibby Co. stock- $95,400. None of the equity investments result in significant influence. INSTRUCTIONS (a) Prepare the journal entry needed for the purchase of stock in 2020. (b) Prepare the adjusting journal entry needed on December 31, 2020

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