Nitro Corporation purchased 80% interest in Mars Company on January 1, 2018. The following determination and distribution of escess was prepared on the purchased date
Price paid for investment in Mars		$160,000
Less book value of interest purchased:
Common stock	$24,000
Paid-in-capital in excess of par	41,600
Retained earnings	93,400
Total stockholder's equity	159,000
Ownership interest	80%	127,200
Excess of cost over book		$32,800
Adjustments
Equipment (80%x$20,000)
(8-year amortization, $2,000 per year)	$16,000 Dr.
Goodwill		16,000 Dr.
Total adjustments		$32,800
Income and dividends for Mars Company during 2018 and 2019 were as follows:
	2018	2019
Income	$45,000	$52,000
Dividends	12,000	18,000
Instructions
Complete the following entries on the books of Mars Company under each methods indicated
Event		Simple Equity Method	Sophisticated Equity Method	Cost Method
2018 To record investment in Mars Company	Investment in Mars Company Cash_________________
Subsidiary income of $45,000 reported to parent	Investment in Mars Company Subsidiary income_______
Dividends of $12,000 paid by Mars	Cash__________ Investment by Mars
2019 Subsidiary income of $52,000 reported to parent	Investment in Mars Company Subsidiary income_______
Dividends of $18,000 paid by Mars	Cash______ Investment by Mars