Sheffield Inc. acquired 20% of the outstanding common stock ofTheresa Kulikowski Inc. on December 31, 2020. The purchase pricewas $1,320,800 for 50,800 shares. Kulikowski Inc. declared and paidan $0.90 per share cash dividend on June 30 and on December 31,2021. Kulikowski reported net income of $755,000 for 2021. The fairvalue of Kulikowski’s stock was $29 per share at December 31, 2021.Assume that the security is a trading security.

Prepare the journal entries for Sheffield Inc. for 2020 and2021, assuming that Sheffield cannot exercise significant influenceover Kulikowski. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31,2020June 30, 2021Dec. 31, 2021
Dec. 31,2020June 30, 2021Dec. 31, 2021
Dec. 31,2020June 30, 2021Dec. 31, 2021
	(To record dividend.)
	(To record fair value.)

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List of Accounts

Prepare the journal entries for Sheffield Inc. for 2020 and2021, assuming that Sheffield can exercise significant influenceover Kulikowski. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31,2020June 30, 2021Dec. 31, 2021
Dec. 31,2020June 30, 2021Dec. 31, 2021
Dec. 31,2020June 30, 2021Dec. 31, 2021
	(To record dividend.)
	(To record revenue.)

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List of Accounts

At what amount is the investment in securities reported on thebalance sheet under each of these methods at December 31, 2021?What is the total net income reported in 2021 under each of thesemethods?

		Fair Value Method		Equity Method
Investment amount (balance sheet)		$		$
Dividend revenue (income statement)
Unrealized holding gain (income statement)
Investment income (income statement)