Aganisine, paid $790,000 for a 40 percent investment in the common shares of Sun Systems Inc. For the first year, Sun Systems Inc. reported net income of $405,000 and at year-end declared and paid cash dividends of $150,000. On the balance sheet date, the fair value of Agaris Inc.'s investment in Sun Systems Inc. shares was $820,000. Required 1. Which method is appropriate for Agonis Inc. to use in accounting for its investment in Sun Systems Inc.? Why? 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its year and financial statements. 3. What role does the fair value of the investment play in this situation? Requirement 1. Which method is appropriate for Aganis Inc. to use in accounting for its investment in Sun Systems Inc.? Why It would be appropriate for Aganis Ino, to use the method of recording its investment in Sun Systems Inc With a holding of this size, 40 percent of the common shares, it probable that Agaris Inc. can exercise significant influence on the operations of Sun Systems Inc. Requirement 2. Show everything that Aganis Ino, would report for the investment and any investment revenue in its year-end financial statements. Record what Agaris Inc. would report for the investment. (Use a minus sign or parentheses for numbers to be subtracted) Z of Total 0 of 1 Choose from any list or enter any number in the input fields and then continue to the next question, MacBook Air Aganising, paid $790,000 for a 40 percent investment in the common shares of Sun Systems Inc. For the first year, Sun Systems Inc, reported net income of $405,000 and at year and declared and paid cash dividends of $150,000. On the balance sheet date, the fair value of Agans Inc.'s investment in Sun Systems Inc. shares was $820,000 Required 1. Which method is appropriate for Agaris Inc. to use in accounting for its investment in Sun Systems Inc.? Why? 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its year-end financial statements. 3. What role does the fair value of the investment play in this situation? Requirement 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its your and financial statements. Record what Agaris Ine would report for the investment (Use a minus sign or parentheses for numbers to be subtracted.) The income statement will show Requirement 3. What role does the fair value of the investment play in this situation? There is adjustment for fluctuations in fair value for this type of investment Choose from any list or enter any number in the input fields and then continue to the next question. mantravene teme ine? Anne od 5790,000 for a 40 percent investment in the common shares of Sun Systems Inc. For the first year, Sun Systems Inc. reported net income of $405,000 and at year-end declared and paid cash dividends of $150,000. On the balance sheet date, the fair value of Aganis Inc.'s investment in Sun Systems Inc. shares was $820,000. Required 1. Which method is appropriate for Aganis Inc. to use in accounting for its investment in Sun Systems Inc.? Why? 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its year and financial statements. 3. What role does the fair value of the investment play in this situation? ESS Requirement 1. Which method is appropriate for Aganis Inc. to use in accounting for its investment in Sun Systems Inc.? Why? It would be appropriate for Aganis Inc. to use the method of recording its investment in Sun Systems Inc. With a holding of this size, 40 percent of the common shares, it probable that Aganis Inc. can exercise significant influence on the operations of Sun Systems Inc. Requirement 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its year-end financial statements. Record what Aganis Inc. would report for the investment (Use a minus sign or parentheses for numbers to be subtracted.) Total Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its year-end financial statements Record what Aganis Inc. would report for the investment. (Use a minus sign or parentheses for numbers to be subtracted.) The income statement will show Requirement 3. What role does the fair value of the investment play in this situation? There is adjustment for fluctuations in fair value for this type of investment question. Choose from any list or enter any number in the input fields and then continue to the Aganis Inc. paid $790,000 for a 40 percent investment in the common shares of Sun Systems in $405,000 and at year-end declared and paid cash dividends of $150,000. On the balance sheet shares was $820,000. Required 1. Which method is appropriate for Aganis Inc. to use in accounting for its investment in Sun Syste 2. Show everything that Aganis Inc. would report for the investment and any inv 3. What role does the fair value of the investment play in this situation? Requirement 1. Which method is appropriate for Aganis Inc. to use in accounting for its investment It would be appropriate for Aganis Inc. to use the method of recording its Investme With a holding of this size, 40 percent of the com Inc obable that Aganis In car amortized cost cash Requirement 2. Show everything that Aganis Inc Record what Aganis Inc. would report for the inve equity estment and any investment gn or parentheses for nur fair-value Choose from any list or enter any number in the input fields and then continue to the next question MacBook Air -o Srdes Was $020,000. Required 1. Which method is appropriate for Aganis Inc. to use in accounting for its investment in Sun! 2. Show everything that Aganis Inc. would report for the investment and any investment rever 3. What role does the fair value of the investment play in this situation? Requirement 2. Show everything that Aganis Inc. would report for the investment and any inve Record what Aganis Inc. would report for the investment. (Use a minus sign or parentheses Add: share of net income Amortized-Cost Method Investment Revenue Carrying value of investment Cash Method Investment Revenue Cost of investment Equity Method Investment Revenue Fair-Value Method Investment Revenue Less: dividends received Requirement 3. What role does the fair value of the investment play in this situation? There is adjustment for fluctuations in fair value for this type of investment. Choose from any list or enter any number in the input fields and then continue to the next quest MacBook Air