Format V BI U Y uestion 1 (30 points) All questions must be answered on-line in the space provided. Francis' investment in Xavier accour #1 30 marks, suggested time 18 minutes or using: Francis paid $60,000 for a 25% interest in Xavier Inc. common shares (3,000 shares Equity Fair value through r at $20 each). Related information: method income method Amount paid by Francis for 25% of Xavier's shares (3,000 X $20) 60,000 Amount of Francis' Investment in Fair value of 100% of Xavier's net assets at date Francis invested 200,000 Xavier at the end of the first year of Excess of fair value over book value of 100% of Xavier's owning 25% of Xavier's common depreciable assets at the date Francis invested in Xavier 30,000 shares (balance sheet balance) Remaining useful life of Xavier's depreciable assets, in years 10 Xavier's total net income for the year 56,000 Total dividends paid by Xavier during the year 3,000 Market value of 25% of Xavier's shares at year end (3,000 X $20) 63,000 You are to complete the grid below to show balance sheet and income statements Amount of Francis' income from its accounts under each of the equity method and the FV-NI method. Show and label investment in Xavier for the first year your calculations. You are not required to prepare journal entries. (income statement balance Format BI U - MacBook Air 885 FS F7 DII FB 88 $ E6 DO FO F10 A 5 6 CO O R T Y U R T Y U O F G H K F G H K C V B N M V B