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INTERMEDIATE ACCOUNTING I HANDOUT PROBLEM 13 Score Name Section Problem (10 points). The attached transactions occurred during the year for Poinsettia Corporation relating to its
INTERMEDIATE ACCOUNTING I HANDOUT PROBLEM 13 Score Name Section Problem (10 points). The attached transactions occurred during the year for Poinsettia Corporation relating to its investment in Bud Corporation. Using the attached form, fill in the dollar changes (indicate whether it is an increase or decrease) in the Investment in Bud, Dividend Revenue, and Investment Revenue accounts by each of the above transactions, assuming that Poinsettia Corporation uses the following methods to account for its investment. (a) Fair value method (net of securities valuation account). (b) Equity method. Using the attached form, indicate the Year 3 ending balance in the Investment in Bud account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue assuming that Poinsettia Corporation uses the following methods to account for its investment. (a) Fair value method (net of securities valuation account). (b) Equity method. REQUIRED: (I) (2)
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