Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for $102,520 and categorizes the investment as an available-for-sale security. Barringer has a book value of $890,000 at January 1, 2013. The book values of Barringers asset and liability accounts are considered as equal to fair values except for a copyright whose value accounted for Andersons excess cost in each purchase. The copyright had a remaining life of 16 years at January 1, 2013. An additional 20 percent of the stock is purchased on January 1, 2014, for $235,900, which gives Anderson the ability to significantly influence Barringer. Barringer reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period. Anderson uses the equity method.

Year	Net Income	Cash Dividends
2013	$196,000	$79,000
2014	243,200	116,000
2015	322,200	116,000

Anderson sells its entire investment in Barringer stock on January 1, 2016 for $472,005.

In addition, the fair value of the Barringer shares is indeterminate.

Requirements:

a.

Prepare all of the journal entries for Anderson regarding their investment in Barringer stock.

1.

Record the acquisition of Barringer stock.

2.

Record Anderson's share of the income from Barringer for the year 2013.

3.

Record the dividends received from Barringer for 2013.

4.

Record any amortization of revaluation increments and decrements for 2013.

5.

Record change in fair value of the investment in Barringer stock on December 31, 2013.

6.

Record any impairment of goodwill on December 31, 2013.

7.

Record the acquisition of Barringer stock.

8.

Record the restated reported figures for 2013 to the equity method.

9.

Record Anderson's share of the income for Barringer Company for the year 2014.

10.

Record the dividends received from Barringer for 2014.

11.

Record any amortization of revaluation increments and decrements for 2014.

12.

Record change in fair value of investment in Marion Company on December 31, 2014.

13.

Record any impairment of goodwill on December 31, 2014.

14.

Record Anderson's share of the income for Barringer Company for the year 2015.

15.

Record the dividends received from Barringer for 2015.

16.

Record any amortization of revaluation increments and decrements for 2015.

17.

Record change in fair value of the investment in Marion Company on December 31, 2015.

18.

Record any impairment of goodwill on December 31, 2015.

19.

Record sale of Barringer stock.

b.

What is the balance in the Investment in Barringer account on December 31, 2013?

c.

What is the balance in the Investment in Barringer account on December 31, 2014?

d.

What is the balance in the Investment in Barringer account on December 31, 2015?

e.	What is the gain or loss on the shares of Barringer sold on January 1, 2016?