On January 1, Y5, Belmont Inc had 100,000 shares outstanding. On that date, Aylmer Inc purchased 25,000 of the outstanding shares of Belmont Inc On January 1, Y5, Aylmer paid a price of $8.00 per share (for Belmont's shares). Both companies have a December 31 year end. Other important information: At December 31, Y5: Aylmer Inc - net income $63,000 Belmont Inc - net income $36,000 Belmont Inc -dividends paid $6,000 Belmont Inc - market price per share $9.50 REQUIRED: 1. Assume Aylmer Inc accounts for the investment as Fair Value thru Net Income (FV-NI). Record all the appropriate transactions for Y5. 2. Assume Aylmer Inc has significant influence and accounts for the investment using the equity method. Record all the appropriate transactions for Y5.

On January 1, Bonneau Corp purchased 90,000 shares of Crossley, Inc stock for $50 each. Crossley has 300,000 shares outstanding. On October 1, Crossley pays a cash dividend of .75 per share. On December 31, Crossley reports net income of $650,000 Date JOURNAL Description PR DR Page CR

a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000. DATE   Debit Credit X/X                                         b. For the year ended December 31, Harris Company earned income of $50,000. DATE   Debit Credit X/X                                         c. For the year ended December 31, Harris Company paid dividends of $8,000.   DATE   Debit Credit X/X                                         d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE   Debit Credit X/X                                       i have a-c PLEASE ONLY HELP ON PART D

am. 133.