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Exercise 12-6 Your answer is partially correct. Try again. Vail Limited acquired 40% of McGillis Corporation's 57,000 common shares for $16 per share on January 1, 2018. On June 15, McGillis declared a cash dividend of $139,000 to all of its shareholders and Aurora received its share of the dividend on the same day. On December 31, McGillis reported net income of $293,000 for the year. At December 31, McGillis's shares were trading at $21 per share. Vail accounts for this investment using the equity method. Vail also acquired 15% of the 414,000 common shares of Crystal Inc for $28 per share on March 18, 2018. On June 30, Crystal declared a $281,000 dividend to all of its shareholders and Aurora received its share of these dividends on that day. On December 31, Crystal reported net income of $622,000 for the year. At December 31, Crystal's shares were trading at $26 per share. Vail intends to hold onto the Crystal shares as a long-term investment for the dividend income. Vail uses the fair value through profit or loss model for this investment. Record the above transactions for the year ended December 31, 2018. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 | Investment in Associates 912000 X Cash 912000 X Mar. 18 v Held for Trading Investments 11592000 Cash 11592000 June 15 Cash 55600 Investment in Associates 55600 June 30 Cash 42150 Dividend Revenue 42150 X x Dec. 31 No Entry TO TODELT OT OO No Entry (To record Vail's share of McGillis's profit.) Unrealized Loss on Held for Trading Investments 828000 X Held for Trading Investments 828000 (To record unrealized gain / (loss) on investments.)