! Required information PA-7 (Algo) Comparing Methods to Account for Various Levels of Ownership of Voting Stock LO A-2, A-3 [The following information applies to the questions displayed below.] Surge Corporation had outstanding 100,000 shares of no-par common stock. On January 10 of the current year, Crash Company purchased a block of Surge Company's shares in the open market at $28 per share for long-term investment purposes. At the end of the current year, Surge reported net income of $293,000 and cash dividends of $0.50 per share. At December 31 of the current year, Surge stock was selling at $30 per share. PA-7 Part 2 and Part 3 2-a. Prepare the journal entries for Crash Company at the dates indicated assuming 15,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 2-b. Prepare the journal entries for Crash Company at the dates indicated assuming 30,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 3-a. Show how the long-term investments should be reported on the current year's balance sheet. 3-b. Show how the long-term investments should be reported on the current year's income statement.