1.OBT Corporation has owned stock of CCC Corp. since 2014.

At December 31, 2017, OBT's balances related to this investment were:

Equity Investments$185,000 debit balance

Fair Value Adjustment on Investment Securities classified as Available for Sale (AfS)$34,000 debit balance

Accumulated Unrealized Holding Gain or Loss (recorded in Retained Earnings)$34,000 credit balance

On January 3, 2018 OBT Corporation purchased additional share of the stock of CCC Corp for $475,000. OBT now exercises significant influence of CCC.

If the equity method had been used from 2014 through 2017, OBT's share of CCC Corp.'s income would have been $33,000 more than the dividends received.

Using the attached T-account template, indicate the balances in the accounts listed above, and prepare the entries to recognize the purchase of shares on 1/3/18, and the entry needed to record the change to the equity method.

No.6

ASSETS

=

LIABILITIES

+

EQUITY

Non-current Assets

Current Assets

Property, Plant & Equipment

Investments

Intangible Assets/Other

Current Liabilities

Non-Current Liabilities

Contributed Capital

Earned Capital

Accumulated OCI