7) on January 2, 2018 X company purchased a 22% interest in Y company for $240,000. Below is a summary information for Y company for the years 2018 thrugh 2020. X company purchased no other investments during 2018-2020. For the requirements below assume that X did not have significant influence over the activities of Y and it was considered a passive investment.

Total net incometotal dividendsfair value of

Yearloss for Ypaid by Yof Y as of 12/31

2018$95000$45,000$1,300,000

2019($55,000)$35,000$900,000

2020$52,000$30,000$ 1,200,000

Prepare the 2020 journal entries that X would record relating to the investment in Y.

X sold its investment in Y on January3,2021, for $280,000. No other investments were purchased during 2021. Prepare the journal entries that X record during 2021 relating to its investments.

Assume again that on January 2, 2018, X purchased a 22% interest in Y for $240,000. Assume the above information for the years 2018 -2020, but now further assume that X did have significant influence over the activities of the Y and the $240,000purchase price represented 22% of the book value of the net assets of Y at the time of the acquisition. Prepare the 202o entries that X would record relating to the Y investment.

On January 3, 2021, X company sold its Y shares for $280,000. No other investments were during 2021. Prepare the journal entries that X would record during 2021 relating to its investments.

Indicate the amount of gross profit or loss (in parentheses) which would be recorded for 2018,2019 and 2020, using the two methods of percentage of completion and completed contract.

Assuming the use of completed contract method, as of 12/31/19, indicate the manner in which the non-cash current assets and or current liabilities relating to this project would be presented on the balance sheet.