Northwest report in its balance sheet its investment in Vancouver? 4. What should Northwest report in its statement of cash flows regarding its investment in Vancouver? P 12-14 Equity method .LO12-6, LO12-7 On January 2, 2021, Miller Properties paid $19 million for 1 million shares of Marlon Company's 6 million outstanding common shares. Miller's CEO became a member of Marlon's board of directors during the first quarter of 2021. The carrying amount of Marlon's net assets was $66 million. Miller estimated the fair value of those net assets to be the same except for a patent valued at $24 million above cost. The remaining amortization period for the patent is 10 years. Marlon reported earnings of $12 million and paid dividends of $6 million during 2021. On December 31. 2021, Marlon's common stock was trading on the NYSE at $18.50 per share. Red 1. When considering whether to account for its investment in Marlon under the equity method, what criteria should Miller's management apply? 2. Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income taxes, deter- mine the amounts related to the investment to be reported in its 2021 a. Income statement b. Balance sheet. c. Statement of cash flows. P 12-15 Classifying investments LO12-2 through LO12-6 Indicate (by letter) the way each of the investments listed below most likely should be accounted for based on the information provided. Item Reporting Category 1. 35% of the nonvoting preferred stock of American T. Trading securities Aircraft Company. M. Securities held-to-maturity 2. Treasury bills to be held to maturity. A Securities available-for-sale 3. Two-year note receivable from affiliate. F. Fair value through net income 4. Accounts receivable. E. Equity method 5. Treasury bond maturing in one week. C. Consolidation 6. Common stock held in an investment account for N. None of these Immediate resale. to nenfit from short-term differences