Accounting for equity investments

P15-20A Accounting for equity investments The beginning balance sheet of Waterfall Source Co. included a $400,000 investment in Evan stock(20% ownership, Waterfall has significant influence over Evan). During the year, Waterfall Source completed the following investment transactions: Mar. 3 May 15 Dec. 15 31 31 31 31 Purchased 4,000 shares at $11 per share of Lili Software common stock as a long-term equity investment, representing 7% ownership, no significant influence. Received a cash dividend of $0.61 per share on the Lili investment. Received a cash dividend of $70,000 from Evan investment. Received Evan's annual report showing $300,000 of net income. Received Lili's annual report showing $120,000 of net income for the year. Evan's stock fair value at year-end was $390,000. Lili's common stock fair value at year-end was $12 per share