pts Quahog purchased of Clam on January for $ in cash and did not have the ability to exercise significant influence.
The price was of Clam's book value. During Clam reported income of $ and paid a dividend of $
On December the market value of Quahog's investment in Clam was $
Then, on January Quahog purchased an additional of Clam for $ in cash and was able to have significant influence.
Quahog had been using the fair value method.
a Journalize all necessary entries on the books of Quahog using the fair value method in including the initial purchase.
b Journalize the conversion to the equity method in
