as a long-term investment at the beginning of the fiscal year, Hat Inc

Subject:AccountingPrice:2.84 Bought5

Share With

as a long-term investment at the beginning of the fiscal year, Hat Inc. purchased 35% of Glove Inc.'s 12 million common shares (voting stock) for 73 million. The fair value and book value of the shares were the same at that time. during the year, Glove inc. earned net income of 20 million and distributed cash dividends of $1.10 per share. at the end of the year, the fair value of the shares is 59 million.

1. what method would be appropriate to account for this investment? Why?

2. prepare the appropriate journal entry for the purchase of this investment.

3. prepare the appropriate journal entry (if needed) to reflect the dividends paid

prepare the appropriate journal entry( in needed) to reflect the net income earned by glove Inc. for the year.

4. prepare the appropriate journal entry (if needed) to reflect the fair market value of the shares at year end.

5. prepare the appropriate journal entry (if needed) to reflect the fair market value of the shares at your end.

6. what is the carrying value of this investment at year end?