2A) Prepare the journal entries that would be recorded by Prince in 2020 if they use the equity method.

2B) Determine the balance in the investment in Snow account on December 31,2020 under the equity method.

prince Corporation purchased 20 percent ownership of Snow Company on January 1, 2019, for $54,000 and paid cash. On that date, the book value of Steam's reported net assets was equal to the fair value of Steam's net assets. Prepare the journal entries that would be recorded by Prince in 2019 and 2020 if they use the cost method to account for their investment in Snow. Net income and dividend payments of Snow were: Year Net Income Dividends 2019 $ 10,000 5,000 2020 20,000 22,000 Investment in s 54,000 S 54,000 Cash 1000 Piv peclred 1000 Cash u, noo Declared u, moo 2) a. Assume Prince Corporation purchased 100 percent ownership of Snow Company on January 1, 2019, for $226,000 and paid cash. On that date, the book value of Steam's reported net assets was $200,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 10 years. Net income and dividend payments of Snow were the same as 1). Prepare the journal entries that would be recorded by Prince in 2020 if they use the equity method. GW = 26,000 = )