1. On January 1, 2017, Hazem Corp. acquired a portion of Maha, Inc. for the following amount: 11000

Record the journal entry using the fair value method (assuming it is a trading equity investment) and record the journal entry using the equity method.

Fair value method:

Equity method:

2. For the year 2017, Hazem For[s share of Maha Inc's income is as follows:

1000

Record the journal entry using the fair value method (assuming it is a trading equity investment) and record the journal entry using the equity method.

Fair value method:

Equity method:

3. At December 31, 2017, Hazem Corp's share of Maha, Inc. have a fair market value of the following amount:

10000

Record the journal entry using the fair value method (assuming it is a trading equity investment) and record the journal entry using the equity method.

Fair value method:

Equity method:

4. On January 17, 2018 Hazem Corp. received a cash dividend form Maha Inc, in the following amount

110

Record the journal entry using the fair value method (assuming it is a trading equity investment) and record the journal entry using the equity method.

Fair value method:

Equity method: