Need help on accounting due in 30mins! Quiz

ouestions uestions 1 2 (of 2) v [The following information applies to the questions displayed below) Bart Company had outstanding 30,000 shares of common stock, par value $10 per share. On January 1, 2015, Homer Company purchased some per share, with the intent of holding them for a long time. At the during 2015, reported the following: net income, $50.000, and cash dividends declared and paid the year, $25,500. The fair value of Bart Company stock at the end of 2015 was $22 per share. Required: 1-a. Identify the method of accounting that Homer company should use for purchasing 3.600 share Case A) Divide the number of shares purchased by the number outstanding to determine the percerfof ownership. The Fair Value Method The Equity Method 1-b. ldentify the method of accounting that Homer Company should use for purchasing 10,500 shares Case B. The Fair Value Method O The Equity Method Time