Control Alt Design acquired 30% of the outstanding common stock of Walter Company on January 1, 2012 by paying $958,000 for the $47,900 shares. Walter declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2012. Walter reported net income of $321,200 for the year. At December 31, 2012, the market price of Walter common stock was $27 per share. (a) Prepare the journal entries of Control Alt Design for 2012 assuming Control Alt Design cannot exercise significant influence over Walter. (Use cost method and assume that Walter common stock should be classified as a trading security.) (b) Prepare the journal entries for Control Alt Design for 2012, assuming Control Alt Design can exercise significant influence over Walter. Use the equity method.