a.
Find the December 31, 2018, Investment Income and Investment in Company C account balances assuming Company A uses the:
- Equity method.
- Initial value method
b.
Explain the manner in which the parent’s internal investment accounting method choice affect the amount reported for expenses in its December 31, 2018, consolidated income statement.
c.
Explain the manner in which the parent’s internal investment accounting method choice affect the amount reported for equipment in its December 31, 2018, consolidated balance sheet
d.
Find Company A’s January 1, 2018,
- Equity value method.
- Initial value method
e.
Identify the worksheet adjustment to Company A’s January 1, 2018, Retained Earnings account balance is required if Company A accounts for its investment in Company C using the initial value method.
f.
Prepare the worksheet entry to eliminate Company C’s
g.
Find the consolidated net income for 2018.
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