Required information ED-1 (Algo) Recording and Reporting an Equity Method Security [The following information applies to the questions displayed below.] Felicia Company acquired 20,000 of the 80,000 shares of outstanding common stock of Nueces Corporation as a longterm investment. The annual accounting period for both companies ends December 31. The following transactions occurred during the year: January 10 Purchased 20,000 shares of Nueces common stock at $16 per share. December 31 Nueces Corporation reported net income of $97,000. December 31 Nueces Corporation declared and paid a cash dividend of $0.50 per share. December 31 Determined the fair value of Nueces stock to be $15 per share. 3. Show how the long-term investment and the related revenue should be reported on the financial statements of Felicia Company. Required information ED-1 (Algo) Recording and Reporting an Equity Method Security [The following information applies to the questions displayed below.] Felicia Company acquired 20,000 of the 80,000 shares of outstanding common stock of Nueces Corporation as a longterm investment. The annual accounting period for both companies ends December 31. The following transactions occurred during the year: January 10 Purchased 20,000 shares of Nueces common stock at $16 per share. December 31 Nueces Corporation reported net income of $97,000. December 31 Nueces Corporation declared and paid a cash dividend of $0.50 per share. December 31 Determined the fair value of Nueces stock to be $15 per share. 3. Show how the long-term investment and the related revenue should be reported on the financial statements of Felicia Company