Fill in the dollar changes caused in the Investment account and Dividend Revenue or investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company.

The "Investment Account" and "Investment Revenue", both distinct columns, would represent activities related to taking an ownership share of a company. "Dividend Revenue", a third distinct column, would represent funds exchanged related to dividend payouts.

Instructions

Fill in the dollar figure associated with the transaction event as it relates to using the (a) Fair Value Method, with it's associated two columns labeled "Investment Account" and "Dividend Revenue", as well as if it were calculated using the (b) Equity Method, with it's associated two columns labeled "Investment Account" and "Investment Revenue"

(a) Fair Value Method

Investment Dividend

Account

Revenue

(b) Equity Method

Investment Investment

Account

Revenue

Transaction

At the beginning of Year 1, Crane bought 30% of Hudson's ordinary shares at their book value. Total book value of all Hudson's ordinary shares was 800,000 on this date.

During Year 1, Hudson reported 60,000 of net income and paid 30,000 of dividends.

ALASS-S---------

During Year 2, Hudson reported 30,000 of net income and paid 40,000 of dividends.

During Year 3, Hudson reported a net loss of 10,000 and paid 5,000 of dividends.

Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.