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Davison Corporation acquired a 45 % interest in Sean Inc. for $ 370,000 on January...

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Davison Corporation acquired a 45 % interest in Sean Inc. for $ 370,000 on January 1 of the current year. Specifically, Davison acquired 103,500 of the 230,000 voting common shares outstanding. Sean reported net income of S 130,000 at the end of the current year and paid cash dividends of S 30,000 during the current year. At the time of acquisition, the book value of Sean's net assets equaled its market value. Sean's shares were selling for $ 13per share at the end of the current year. a. Prepare all journal entries required to record the transactions indicated assuming that Davison uses b. Determine the carrying value of the investment at the end of the current year assuming that c. Prepare the journal entries required to account for Davison's investment in Sean assuming that the the equity method. Davison uses the equity method investment is classified as available-for-sale

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