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On January 1 Year 5. Elake Corporation purchased 25% of the outstanding common shares of Stergls Limited for $2.450,000 The following relates to Stergis since the acquisition date. Other Comprehensive Wear NETI TIN Income Dividends Pata Years $ 68.600 $13,800 598,eo Ver 196.000 39,20 98.090 Required: (al Assume that Blake is a public company and the number of shares held by Blake is enough to give it significant influence over Stergis. Prepare all the journal entries that Blake should make regarding this investment in Year 5 and Yar 6 General Journal Dett Credit January Wears [ck to select CITO SONCE To record chase of 25% of Sergis. Dex 12 Years IdIKTOR Ida Ta recortar Yurt to select LICERO Torer Oct 10000D Tellick to select ICO To con Id PORTACHI ICH HELSIN ILOR December 31, Year 6 IC kb select) V Click to select) v To record 25% of Stergis's Year 8 net Encome (Click to select [Click to select v To record 25% of Stergisis Year 6 OCT Click to select) V [Click to select To record 25of Sterges's Year 6 dividends. (b) Assume that Blake is a private company. Even though it has significant influence, it chose to use the cost method to account for its Investment Prepare all the journal entries that Blake should make regarding this investment In Year 5 and Year 6. Date January 1 Year 5 General Journal Debit CE Click to select Click to select) Tu record purchase of 25 of Sturgis, December 31 Year E Click to select Click to select To record 25 Sett dividens Trollok to select [ 2 ST

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