Chapter 12, Problem 12.3DMP

Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Ayayai Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Sunland Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.)         (a) Fair Value Method   (b) Equity Method     Transaction   Investment Account   Dividend Revenue   Investment Account   Investment Revenue 1.   At the beginning of Year 1, Ayayai bought 30% of Sunland's common stock at its book value. Total book value of all Sunland's common stock was $760,000 on this date.                 2.   (a) During Year 1, Sunland reported $52,000 of net income.                     (b) During Year 1, Sunland paid $28,500 of dividends.                 3.   (a) During Year 2, Sunland reported…

A company, accounting for an equity investment under the equity method, is preparing its income statement and is trying to determine what amount should be included as income from the investee. Identify the location in professional standards that indicates that, under the equity method, the investor recognizes its share of the earnings or loss of the investee.   Enter the exact section and paragraph with helpful information for this scenario. (An example of a correctly formatted FASB ASC response is 205-10-25-2.)

ansser must be in table format or i will give down vote