Exercise 164 Your answer is partially correct. Try again. Presented below are two independent situations. 1. Guo Cosmetics acquired 10% of the 200,000 shares of common stock of Chy Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Chy declared and paid a $50,000 dividend. On December 31, Chy reported net income of $110,000 for the year. At December 31, the market price of Chy Fashion was $15 per share. The stock is classified as available-for-sale. Liptin, Inc., obtained significant influence over Blurr Corporation by buying 25% of Blurr 50,000 outstanding shares of common stock at a total cost of $7 per share on January 1, 2020. On June 15, Blurr declared and paid a cash dividend of $40,000. On December 31, Blurr reported a net income of $90,000 for the year. 2. 2020 (a) T Mar. 18 Stock Investments 240000 Cash 240000 June 30 Cash 5000 Dividend Revenue 50001 x Dec. 31 7 Dividend Revenue 60000 X Unrealized Gain-Income 60000 (b) TJan. 1 V Stock Investments 87500 Cash 87500 June 15 Cash 10000 Stock Investments 10000 Dec. 31 7 Stock Investments 22500 X Cash 22500