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(1) Prepare all journal entries necessary to account for Pender's investment for Year 6 . (If no entry is required for a transaction/event, select No

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(1) Prepare all journal entries necessary to account for Pender's investment for Year 6 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record 30% investment in Saltspring. Notei Enter debits tefore eredits. (ii) Determine the correct balance in Pender's investment account at December 31 , Year 6 . (Omit $ sign in your response.) Balance in Pender's investment account (iii) Prepare an income statement for Pender for Year 6. (Negative amounts and deductibies should be Indicated by a minus sign. Omit $ sign in your response, (b) Assume that Pender uses the cost method. (i) Prepare all journal entries necessary to account for Pender's investment for Year 6 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Journal entry worksheet (ii) Determine the coerect balance in Pender's investment account at Decenber 31, Year 6 . (Omit 5 sign in your response.) Pender Corp, paid $255,000 for a 30% interest in Saltspring Limited on January 1, Year 6. During Year 6, Saltspring paid dividends of $104,000 and reported profit as follows: Pender's profit for Year 6 is calculated on $936,000 in sales, expenses of $104,000, income tax expense of $332,800, and its investment income from Saltspring. Both companies have an income tax rate of 40%. Required: (a) Assume that Pender reports its investment using the equity method. (i) Prepare all journal entries necessary to account for Pender's investment for Year 6 . (If no entry is required for a transaction/event, select "No journat entry required" in the first account fleld.) Journal entry worksheet (ii) Determine the correct balance in Pender's investment account at December 31 , Year 6 . (Omit \$ sign in your response.) Balance in Pender's investment account (iii) Prepare an income statement for Pender for Year 6. (Negative amounts and deductibles should be indicated by a minus sign. Omit \$ sign in your response.)

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