Bott Co acquired 500 shares of Barus Co at $53 per share as a long term investment. This represents 10% of the outstanding voting shares of Barus Co. During the year, Barus paid a dividend of $3 per share. At the year-end Barus reported net income of $60,000 and its are price had risen to $55 per share.

Required

1. What method should Bott use to account for its investment in Barus?

2. Prepare a journal for the acquisition of the 500 shares of Barus Co.

3. Prepare a journal to record the journal for the receipt of the dividend from Barus Co.

4. At the year-end what amount would Bott Co. report on its balance sheet and income

   statement in respect of its investment in Barus Co?