On January 1, 2000 Dad, Inc. spends $600,000 purchasing Kid Corps common stock for $24 per share. This purchase makes Dad 20% owner of Kid.

Assume that Kids Net income during 2000 is $200,000. Kid declared and paid dividends during the year at the rate of $1 per share. Kids stock is trading for $40 per share on December 31, 2000.

The questions that follow ask you to calculate various amounts for Dad as December 31, 2000 assuming that it accounts for this investment under three different methods.

(Equity method - Available for Sale - Trading securities)

a) What amount would Dad report in the assets section of its balance sheet related to this investment as of December 31, 2000? (3 methods)

b) How much income would Dad report related to this investment during the year 2000? ((3 methods)

c) How much cash flow was received by Dad relating to this investment during the year 2000? (3 methods)