C) Perelli uses the Complete Equity method to account for its investment in Singer.

Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,954,500 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following: Current assets Long-term assets Other assets Current liabilities Common stock, $20 par value Other contributed capital Retained earnings $2,935,000 3,884,600 758,900 1,571,600 1,998,200 1,887,800 1,614,100 Additional data on Singer Company for the four years following the purchase are: 2011 Net income (loss) Cash dividends paid, 12/30 2012 2013 2014 $2,003,400 $476,800 ($180,500 ) ($321,700 ) 501,500 501,500 501,500 501,500 Prepare journal entries under each of the following methods to record the purchase and all investment-related subsequent events on the books of Perelli Company for the four years, assuming that any excess of purchase price over equity acquired was attributable solely to an excess of market over book values of depreciable assets (with a remaining life of 15 years). (Assume straight-line depreciation.) (b) Perelli uses the partial equity method to account for its investment in Singer. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2011 (To record the investment) (To record dividend income) (To record equity income (loss)) 2012 (To record dividend income) (To record equity income (loss)) 2013 (To record dividend income) (To record equity income (loss)) 2014 (To record dividend income) (To record equity income (loss))