on excel

On January 1,2012 , Allan acquires 15 percent of Bellevue's outstanding common stock for $62,000. Allan classifies the investment as an available-for-sale security and records any unrealized holding gains or losses directly in owners' equity. On January 1, 2013, Allan buys an additional 10 percent of Bellevue for $43,800, providing Allan the ability to significantly influence Bellevue's decisions. During the next two years, the following information is available for Bellevue: In each purchase, Allan attributes any excess of cost over book value to Bellevue's franchise agreements that had a remaining life of 10 years at January 1, 2012. Also at January 1, 2012, Bellevue reports a net book value of $280,000. a. Assume Allan applies the equity method to its Investment in Bellevue account: 1. On Allan's December 31,2013 , balance sheet, what amount is reported for the Investment in Bellevue account? 2. What amount of equity income should Allan report for 2013 ? 3. Prepare the January 1, 2013, journal entry to retrospectively adjust the Investment in Bellevue account to the equity method. b. Assume Allan elects the fair-value reporting option for its investment in Bellevue: 1. On Allan's December 31,2013 , balance sheet, what amount is reported for the Investment in Bellevue account? 2. What amount of income from its investment in Bellevue should Allan report for 2013