On January $1,2022,$ Cullumber Corp. bought $31,000$ shares of the available $100,000$ common shares of Iceberg Inc., a publicly traded

firm. This acquisition provided Cullumber with significant influence. Cullumber paid $$719,000$ cash for the investment. At the time of

the acquisition, Iceberg reported assets of $$2,507,000$ and liabilities of $$1,215,000.$ Asset values reflected fair market value, except

for capital assets that had a net book value of $$502,000$ and a fair market value of $$747,000.$ These assets had a remaining useful life

of five years. For $2022$ Iceberg reported net income of $$409,000$ and paid total cash dividends of $$100,000.$

On May $16,2023,$ Cullumber sold $15,500$ of its shares in Iceberg for $$425,000.$ Cullumber has no immediate plans to sell its remaining

investment in Iceberg.

Iceberg is actively traded, and stock price information follows:

January $1,2022$

$$29$

December $31,2022$$$31$

January $1,2023$

$$32$

Assuming Cullumber is using the equity method under ASPE, did the initial investment include a payment for goodwill?

Payment for goodwill $

At the end of $2022,$ what would appear on the income statement and balance sheet of Cullumber in connection with its

investment in lceberg?

Investment income on income statement $

Investment account on balance sheet

$

Provide the entry to account for Cullumber's sale of the shares in May $2023.($Credit account titles are automatically indented when

the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

List debit entry before credit entry.$)$

Account Titles

Debit

Credit

How should Cullumber account for its remaining investment in lceberg?

Under ASPE, Cullumber can choose the

for its remaining

investment in Iceberg.