1- Jason Company owns 24% of the voting common stock of Kalco Corp. Jason does not have the ability to exercise significant influence over the operations of Kalco. What method should Jason use to account for its investment in Kalco?

2- Describe how direct combination costs, contingent considerations, and a bargain purchase are reflected in recording an acquisition investment.

3- What is meant by the partial equity method? How does it differ from the equity method? What are its advantages and disadvantages compared to the equity method?

4- Sand Co. acquired Fence Co. and in effecting this business combination, there was a cash-flow performance contingency to be paid in cash and a market-price performance contingency to be paid in additional shares of stock. In what accounts and in what section(s) of a consolidated balance sheet are these contingent consideration items shown?