Marble Inc acquired 25% of New Metal Enterprise for $2,000,000 on January 1,2013. The fair value and book value of 25% of New Metal Enterprise net assets were $2,000,000 and $1,600,000 respectively on that date and the difference was attributable to undervalue

plant assets that would depreciate over 10 years. During 2013 New Metal Enterprise reported net income of $ 900.000 and paid dividends of $500.000

New Metal Enterprise had a total fair value of $12,00,000 as of December 31,2013. Marble on acquisition elected to use the Fair Value method to account for this investment.

a. record the appropriate entries

b. If Marble had used the equity method, what is the investment

account balance at December 31,2013?

c. On Marble's balance Sheet at December 31, 2013, the investment account will have what balance?

d. Record the journal entry to record the acquisition of this investment on January 1.

e. On Marbles Income statement for year ended December31

2013, what will be reported?