Chapter 10, Problem 10.12E

1.

To determine

Significant influence equity investments:

Significant influence equity investments are the investments in the equity securities, where the investor holds in between 20% to 50% of the voting stock. These securities are reported as long-term assets in the balance sheet.

To Journalize: The transaction of S Investments in P’s voting stock for the year 2018.

2.

To determine

To classify and prepare: The partial balance sheet for S Investments as of December 31, 2018.

3.

To determine

To prepare: The partial income statement for S Investments as of December 31, 2018.