Entries for equity investments 20 50 ownership On January 6, 20Y8, Bulldog Co purchased 26 of the outstanding common stock of $154,000 Gator Co paid total dividends of $16,900 to all shareholders on June 30, 20Y8 Gator had a net loss of $29,300 for 20Y8 a Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co stock Jan 6 Purchase CashDividend RevenueInvestment in Gator Co StockLoss on Gator Co StockNotes Receivable Select Select CashDividend RevenueInvestment in Gator Co StockLoss on Gator Co StockNotes Receivable Select Select June 30 Dividend CashDividend RevenueInvestment in Gator Co StockLoss on Gator Co StockNotes Receivable Select Select CashDividend RevenueInvestment in Gator Co StockLoss on Gator Co StockNotes Receivable Select Select Dec 31 Equity Loss CashDividend RevenueInvestment in Gator Co StockLoss of Gator Co Notes Receivable Select Select CashDividend RevenueInvestment in Gator Co StockLoss on Gator Co StockNotes Receivable Select Select b Compute the balance of Investment in Gator Co Stock on December 31, 20Y8 c How does valuing an investment under the equity method differ from valuing an investment at fair value Under the (equity fair value) method, the investor will record their proportionate share of the net increase (or decrease) of the book value of the investee resulting from earnings and dividend distributions The (equity fair value) method uses market price information to value the investment in the investee

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Entries for equity investments: 20%50% ownership On January 6, 20Y8, Bulldog Co. purchased 26% of the outstanding common stock of $154,000. Gator Co. paid total

Entries for equity investments: 20%50% ownership

On January 6, 20Y8, Bulldog Co. purchased 26% of the outstanding common stock of $154,000. Gator Co. paid total dividends of $16,900 to all shareholders on June 30, 20Y8. Gator had a net loss of $29,300 for 20Y8.

a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock.

Jan. 6 - Purchase	CashDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable	- Select -	- Select -
	CashDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable	- Select -	- Select -
June 30 - Dividend	CashDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable	- Select -	- Select -
	CashDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable	- Select -	- Select -
Dec. 31 - Equity Loss	CashDividend RevenueInvestment in Gator Co. StockLoss of Gator Co.Notes Receivable	- Select -	- Select -
	CashDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable	- Select -	- Select -

b. Compute the balance of Investment in Gator Co. Stock on December 31, 20Y8.

c. How does valuing an investment under the equity method differ from valuing an investment at fair value?

Under the (equity / fair value) method, the investor will record their proportionate share of the net increase (or decrease) of the book value of the investee resulting from earnings and dividend distributions. The (equity / fair value) method uses market price information to value the investment in the investee.