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3 On January 1, 2018, P Company paid $1,920,000 for 60,000 shares of L Co.'s voting common stock which represents a 45% investment. No allocation

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3 On January 1, 2018, P Company paid $1,920,000 for 60,000 shares of L Co.'s voting common stock which represents a 45% investment. No allocation to goodwill or other specific account was made. Significant influence over L Inc. was achieved by this acquisition. L Inc. distributed a dividend of $2.50 per share during 2018 and reported net income of $670,000. What was the balance in the Investment in L Co. account found in the financial records of P Inc. as of December 31, 2018? * (2 Points) Enter your answer 4 On January 4, 2016, W Co. purchased 40,000 shares (40%) of the common stock of A Corp., paying $800,000. There was no goodwill or other cost allocation associated with the investment. W Inc. has significant influence over A Inc. During 2016, A Inc. reported income of $200,000 and paid dividends of $80,000. On January 2, 2016, W Inc. sold 5,000 shares for $125,000. What was the balance in the investment account after the shares had been sold? * (2 Points) Enter your answer 5 On January 1, 2017, D Inc. acquired 15% of W Co.'s outstanding common stock for $62,400 and categorized the investment as an available-for-sale security. W Inc. earned net income of $96,000 in 2017 and paid dividends of $36,000. On January 1, 2018, D inc bought an additional 10% of W for $54,000. This second purchase gave D Inc. The ability to significantly influence the decision making of W. During 2018, W earned $120,000 and paid $48,000 in dividends. As of December 31, 2018, W reported a net book value of $468,000. For both purchases, D inc. concluded that W Co.'s book values approximated fair values and attributed any excess cost to goodwill. Q5. On December 31, 2018 balance sheet, what balance was reported for the Investment in w Co. account? (2 Points) Enter your

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