Gant Company purchased 30 percent of the outstanding shares of Temp Company for $74,000 on January 1, 20X6. The following results are reported for Temp Company: 20X6 Net income $ 46,000 20X7 $ 41,000 Dividends paid 20X8 $ 53,000 12,000 29,000 17,000 Fair value of shares held by Gant: January 1 74,000 93,000 90,000 December 31 93,000 90,000 101,000 Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp: a. Carries the investment at fair value. b. Uses the equity method. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant's investment in Temp at the end of each year assuming that Gant uses the equity method in accounting for its investment in Temp. 20X6 20X7 20X8 Income from investment $ 13,800 $ 12,300 $ 15,900 Balance in investment $ 84,200

Dd.91.

Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock increased by $20,000 each year. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership: Year 20X2 20X3 20X4 Winston Corporation Operating Income $100,000 Year 20X2 20X3 20X4 60,000 250,000 Dividends $ 40,000 80,000 120,000 Fullbright Company Dividends Net Income Fair Value Equity Method Net Income $70,000 40,000 25,000 Required: Compute the net income reported by Winston for each of the three years, assuming it accounts for its investment in Fullbright by carrying the investment at fair value, or using the equity method. $30,000 60,000 50,000

Sunshine Inc. has the following transactions pertaining to the common stock.   Jan. 1  Bought 40% of Sealand’ 60,000 outstanding shares of common stock at a cost of $12 per share, obtaining significant influence over Sealand Corp April 15 Sealand declared and paid a cash dividend of $45,000. May18 Acquired 5% of the 400,000 shares of common stock of Bluewater Corp. at a total cost of $6 per share June 1 Purchased 500 shares (2% ownership) of Young Company common stock for $30 per share plus brokerage fees of $400. July 1 Sold 100 shares of Young stock for $3,300, less a $50 brokerage fee. Aug.30 Bluewater declared and paid a $75,000 dividend. Oct.1 Received a dividend of $1.25 per share of Young Company. Dec.31 Bluewater Corp. reported net income of $244,000 for the year Dec.31 Sealand reported net income of $120,000 for the year At December 31, the market price of Bluewater Corp was $13 per share and the Young Company was $…