Chapter 10, Problem 10.15E

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 discuss: The method which E Motors should use to account for the investment in B Motors and its reason.

2.

To determine

To Journalize: The transactions of E Motors investment in B Motors for the year 2018.

3.

To determine

To post: All the transaction of the year 2018 to the investment T-account, and to determine its balance after posting all the transactions.