1. On 01/01/2013, Yaro Company owns 30% of the common stock of Dew Co. with $450,000 cash and 10,000 shares ($1 face value and $15 market value) that are issued acquire the Dews shares. Assume that Yaro gain significance influence over Dew. a. What counting method should Yaro use to record its investment? What are the journal entries for Yaro and Dew to document the investing decision on 01/01/2013 respectively? b. During 2013, Dew reported income of $250,000 and paid cash dividends of $80,000. There is no amortization associated with the investment. During 2013, how much income should Yaro recognize related to this investment? What is the balance of the investment account by the end of 2013? Please also write down the journal entries that are related to the investment account. c. Assume that Yaro controls Dew with the 30% ownership, and the other information remains the same. Also assume that Dews balance sheet are as below at 01/01/2013. d. Note that PPE has 5 years of useful life left while Patent has 10 years of useful life left. The liability will be paid off in 8 years. Given all the information, how much should the investment income be for 2013? What should the ending balance be for the investment account for 2013? For the investment activities, is it a bargain purchase or was goodwill created during the process? And how much