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12.83918 acquired 25t of Neo Enterprises for $2,000,000 on January 1, 2015. trix, Inc The fair value and book value of 25% of Neo's identifiable

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12.83918 acquired 25t of Neo Enterprises for $2,000,000 on January 1, 2015. trix, Inc The fair value and book value of 25% of Neo's identifiable net assets were $2,000,0o0 and $1,600,000 on that date, and the difference was attributable to assets that would be depreciated over 10 years. During 2015 Neo recognized net income of $500,000 and paid dividends of $400,000. Neo had a fair market value of $10,000,000 as of December 31, 2015. Required (Total of 8 Points): Write the journal entries necessary to account for the Neo investment, assuming that Matrix accounts for that investment as (a) an equity method investment, and (b) elects the fair- value option. (a) Equity Method Investment 1/1/15 cash $amil a AGM/stun (25%) (b) Fair Value Option

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