Lynx Company invested $650,000 to acquire 40,000 shares of Cub stock on May 1, 2017. At the date of acquisition Cub had the following Stockholders Equity Common Stock ($1 par) $ 100,000 Paid in Capital 600,000 Retained Earnings 500,000

At the date of acquisition, the book value of Cubs assets and liabilities were identical except for equipment which had a book value of $390,000 and a fair market value of $510,000 with a remaining life of 6 years.

During 2017 Cub had income of $90,000 and paid dividends of $15,000 on April 15 and $20,000 on October 15.

REQUIRED: 1. Determine the income that would be reported by lynx on its 2017 income statement assuming that Lynx could exercise significant influence over Cub 2. Determine the income that would be reported by Lynx on its 2017 income statement assuming that Lynx could not exercise significant influence over Cub 3. Assuming that Lynx could exercise significant influence over Cub what would be the balance in Lynxs Long-Term Investment account as of December 31, 2017.