journalize any adjusting entry required by these data 585000

1. Identify the appropriate accounting method for each of the following situations:

a. Investment in 25% of investee’s stock

b. 10% investment in stock

c. Investment in more than 50% of investee’s stock

2. At what amount should the following available for sale investment portfolio be reported on the December 31 balance sheet? All the investments are less than 5% of the investee’s stock.

Journalize any adjusting entry required by these data.

3. Investor paid $67,900 to acquire a 40% equity method investment in the common stock of Investee. At the end of the first year, Investee’s net income was $80,000, and

Investee declared and paid cash dividends of $55,000. What is Investor’s ending balance in its Equity Method Investment account? Use a T account to answer.

4. Parent company paid $85,000 for all the common stock of Subsidiary Company, and Parent owes Subsidiary $20,000 on a note payable. Complete the consolidation work sheet below.