How to approach the AD schedule under the equity method?

Question 1 : (1 S marks) On January 1 , Year 4, Cat Corporation purchased common shares of Mouse Limited for 20002000. On that date the net assets of Mouse had a book value of and all of individual assets of Mouse had fair values tlat were equal to their book values except for: Nlachme (remaining life of 5 years) Fair Value Sizooo:ooo Book value s 500,000 The following relates to Mouse since the acquisition date: Year 2014 2015 Net Income s 220,000 1 go:ooo Dividends paid s 170,000 180,000 In Year there was a goodwill impairment loss equal to of the goodufll created at acquisition date. On Januar,' 15: Year 6: the market value of 30% of Mouse common shares V.as and this decline was considered permanent Requi1Qd: Prepare all the journal entries that Cat should make regarding this investment m Mouse for Years 4, 5 and on January Year 6 assuming die folloufng avo independent cases: a) Cat ouns of common shares of ilouse (13 marks) b) Cat cnvns of common shares of ilouse_ There is only one Odier shareholder 11.110 ovms 700 0 of die Mouse common shares. (5 marks) Round to the nearest dollar. Show all work and schedules Hint: Acquisition differential $200,000. You must prepare the AD schedule based only on % (see page 153) as under the equity method: you show the impact of all consolidation-type adjustments