Accounting for Equity Investments

E15-15 Accounting for equity investments Suppose that on January 6, 2018, East Coast Motors paid $280,000,000 for its 35% investment in Boxcar Motors. East Coast has significant influence over Boxcar after the purchase. Assume Boxcar earned net income of $90,000,000 and paid cash divi. dends of $45,000,000to all outstanding stockholders during 2018. (Assume all out. standing stock is voting stock.) Requirements 1. What method should East Cost Motors use to account for the investment in Boxcar Motors? Give your reasoning investment. Include an explanation for each entry the transactions are posted? How would 2. Journalize all required 2018 transactions related to East Cost Motors's Boxcar 3. Post all 2018 transactions to the investment T-account. What is its balance after all this balance be classified on the balance sheet dated December 31,2018