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 your 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-end 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 Inc. to use the V 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 MacBook Air Agnnls Inc, 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 $406,000 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? 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.) _ IL 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. 0983 90 110 mm MacBook Air J AMIT UIVIDONOS OF SIB0,000. On the balance sheet date, the fair value of Agunis Inc.'s investment in Sun Systems Inc UTUSS Icroporod net income of 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-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 year-end financial statements. Record what Aganis Inc. would report for the investment. (Use a minus sign or parentheses for numbers to be subtracted.) 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? vidends received 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. MacBook Air e d and paid cash dividends of $150,000. On the balance sheet date, the fair value of Agonis Inc.'s investment in Sun Systems 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 Agaris Ine 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? 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 come amortized cost obable that Aganis Inc. can exercise significant influence on the operations of Sun Syai Inc. cash Requirement 2. Show everything that Aganis Inc Istment and any investment revenue in its year-end financial statements. Record what Aganis Inc. would report for the inve gn or parentheses for numbers to be subtracted.) equity fair value The income statement will show: Choose from any list or enter any number in the input fields and then continue to the next question 0 I, SUN Systems Inc. reported net income of Pue dividends of $150,000. On the balance shoot date, the fair value of Aganis Inc.'s investment in Sun System 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 Agaris 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? It would be appropriate for Aganis Inc. to use the method of recording its investment in Sun Systems Inc. probable that Aganis Inc. can exercise significant influence on the operations of Sun With a holding of this size, 40 percent of the common shares, it Inc. Requirement 2. Show everything that Aganis Inc. would reporti Record what Aganis Inc. would report for the investment. (Usea ant and any investment revenue in its year-end financial statements. parentheses for numbers to be subtracted.) is not The income statement will show: moose from any list or enter any number in the input fields and then continue to the next question. 1985 21:30. MA