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Bridgeport Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December...

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Bridgeport Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017, The purchase price was $1,212,000 for 50,500 shares. Kulikowski Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2018. Kulikowski reported net income of $730,000 for 2018. The fair value of Kulikowski's stock was $27 per share at December 31, 2018. Assume that the security is a trading security * Question 1 Your answer is partially correct. Try again. Prepare the journal entries for Bridgeport Inc. for 2017 and 2018, assuming that Bridgeport cannot exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 1212000 31, 201 uity Investmen 21200 LDune 30, 2018 Cash) 787 ividend Revenu 7875 Dec. 1, 2018 Cash l 787 ividend Revenu 7875 (To record dividend.) air Value Adfustmen 5150 TR5001 Unrealized Holding Gain or Loss - Equity To record fair value.)

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