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Class exercise - Comparison of results of methode Assume: 1. P bought 20,000 of the...

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Accounting

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Class exercise - Comparison of results of methode Assume: 1. P bought 20,000 of the 100,000 outstanding shares of on January 1, Year s cach. At that time. I owned a patent that had 3 years left to go, worth $45.000, which had zero value on l's books 2. Company I paid dividends during the year of 50.50 per share to all its shareholders 3. During the year. Company I had net income of $100.000, not counting any adjustment that might be needed for its undervalued patent 4. During the year, Company I had a positive foreign exchange translation adjustment, which affected I's other comprehensive income, of $15,000 5. The market value of I's stock increased during the year from $10 on January 1 to $11.50 on December 31 Fill in the table below, by compute the ending balances for the following accounts, not all of which might be applicable, depending on which of the three methods used in class were used: Equity Comparison of ending balances on P's books - not all may be applicable Cost method Fair value Investment in I Dividend income Equity in Income from I I Unrealized gains Valuation allowance on investment in I Other comprehensive income If you have time, before we go over it in class, list the journal entries that would be used for e method

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