Chapter A, Problem 6P

1.

To determine

Identify the method used by Company P to account the investment in Company T under Case A and Case B

2a.

To determine

Journalize the purchase of investment in Company T stock for Case A and Case B

b.

To determine

Journalize the income reported by Company T, for Case A and Case B

c.

To determine

Journalize the dividends paid by Company T, for Case A and Case B

d.

To determine

Journalize the adjusting entry for the changes in fair value, for Case A and Case B

3.

To determine

Complete the table for the investments of Company P for Case A and Case B

4.

To determine

Explain the reasons for the differences between the Case A and Case B investments