Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $90,000 and declared dividends of $17,100 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? would it increase or decrease

Jackson Company engaged in the following investment transactions during the current year. February 17    Purchased 430 shares of Medical Company common stock for $15 per share plus a brokerage commission of $150. Jackson does not have significant influence over Medical.April 1    Bought 23,000 of the 100,000 outstanding shares of Olde Company for $230,000. Goodwill of $73,000 was included in the price.June 25    Received a $1.30 per share dividend on Medical Company stock.June 30    Olde Company reported second-quarter profits of $13,000.October 1    Purchased 1,300 bonds of Alpha Company for $14 per bond plus a brokerage fee of $330. These bonds are classified as securities available-for-sale.December 31    Medical Company shares are selling for $20 and Alpha bonds are selling for $11.Prepare the appropriate journal entries to record the transactions for the year, including year-end adjustments. Note: If no entry is required for a transaction/event, write "No journal entry required"

Concord Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Concord does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Concord' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. 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 O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c)

Indigo Corporation purchased 370 shares of Sherman Inc. common stock for $13,100 (Indigo does not have significant influence). During the year, Sherman paid a cash dividend of $3.00 per share. At year-end, Sherman stock was selling for $37.50 per share. Assume the stock is nonmarketable. Prepare Indigo's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. 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 o for the amounts.)