Market Method or Equity Method Yukon Outdoor Equipment acquired 25% of the voting stock of Bearpaw Snowshoes for $50 mil- lion cash. In year one, Bearpaw had a net income of $28 million and paid a cash dividend of $12 million. 1. Using the equity and the market methods, show the effects of the three transactions on the accounts of Yukon Outdoor Equipment. Use the balance sheet equation format. Also show the accompanying journal entries. Assume constant market value for Bearpaw. 2. Which method, equity or market, would Yukon use to account for its investment in Bearpaw? Explain.