Comparing Fair Value and Equity Methods

Company A purchased a certain number of Company B$\text{'}$s outstanding voting shares at $$20$ per share as a long$-$term investment. Company B had outstanding $20,000$ shares of $$10$ par value stock. Complete the following table relating to the measurement and reporting by Company A after acquisition of the shares of Company B stock.

$\backslash$table$[[,$Fair Value,Equity$],[$Questions$,$Method,Method$]]$

a$.$ What level of ownership by Company $A$ of Company $B$ is required to apply the method?

$\backslash$table$[[$For $b,e,f,$ and $g,$ assume the following:,,,$],[$Number of shares acquired of Company B stock,$2,500,7,000,],[$Net income reported by Company B in first year,$$59,000,$$$59,000,],[$Dividends declared by Company B in first year,$$12,000,$$$12,000,],[$Market price at end of first year, Company B stock,$$r,17,$$$17$