Equity Method - Example On Jan. 1, 2017, ABC buys 40% of the voting shares of XYZ for $100,000 cash. In 2017, XYZ has earnings of $30,000 and pays dividends of $10,000. If the investment is accounted for by the equity method, ABC will make the following entries on Dec. 31, 2017: To record ABC's share of XYZ's net income: To record receipt of dividends from XYZ Following the two entries for 2017, the investment account in XYZ will reflect the following: . el