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Equity Method Accounting (10 points) Jardon purchased 3,000,000 of the outstanding 10,000,000 shares of Angel...

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Accounting

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Equity Method Accounting (10 points) Jardon purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Asociates, on Jarzary 1, 2020. Jardon has significant influence over Angel, so Jardon will account for the investment using the equity method. Angel declared a cash dividend of S200,600 on September 1, 2020 payable September 30, 2020. Angel reported Net Income of $1,250,000 for the year. What are the journal entries Jardon will make regarding its investment in Angel on September 30, 2020 (for Angel's dividend) and at the end of the year regarding Angel's net income? Critical Thinking: A recent accounting rule change requires companies to record their equity investments with no significant influence at fair market value on the balance sheet with unrealized gains or losses going in net income. Review the arguments in this controversy over in application to the income statement of Berkshire Hathaway (6 points, extra credit)

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