On January 1, 2018, Sperrey Motors paid $ 460 million for a 40% investment in Bionic Motors. Bionic earned net income of $ 70 million and declared and paid cash dividends of $ 20 million during 2018.

1.	What method should SperreySperrey Motors use to account for the investment in BionicBionic? Give your reason.
2.	Journalize these three transactions on the books of SperreySperrey Motors. Show all amounts in millions of dollars (rounded to the closest million), and include an explanation for each entry.
3.	Post to the Equity-Method Investment T-account. What is its balance after all the transactions are posted?

1. What method should Sperrey Motors use to account for the investment in Bionic? Give your reason. V is appropriate because Sperrey Motors holds a 40% investment in Bionic and therefore, may have over Bionic. ctions on the books of Sperrey Motors. Show all amounts in millions of dollars (rounded to the closest million), and include an explanation for each entry. (Enter amounts in millions as provided to you in the problem statement. Round answers to the closest million. Record debits first, then in the last line of the journal entry table.) Consolidation method Equity method Fair value method nvestment in Bionic. Journal Entry 1. What method should Sperrey Motors use to account for the investment in Bionic? Give your reason. V is appropriate because Sperrey Motors holds a 40% investment in Bionic and therefore, may have over Bionic an explanation for each entry. (Enter amounts in millions as provided to you in the problem statement. Round answers to the closest million. Record de 2. Journalize these three transactions on the books of Sperrey Motors. Show all amounts in millions of dollars (rounded to the credits. Select the explanation on the last line of the journal entry table.) almost no influence Begin with the purchase of the investment in Bionic. control Journal Entry significant influence 2. Journalize these three transactions on the books of Sperrey Motors. Show all amounts in millions of dollars (rounded to the closest million), and include an explanation for each entry. (Enter amounts in millions as provided to you in the problem statement. Round answers to the closest million. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin with the purchase of the investment in Bionic. Journal Entry Accounts and Explanations Date Debit Jan 1 Next, record the net income earned. Journal Entry Accounts and Explanations Date 2018 Now record the cash dividends received. Journal Entry Accounts and Explanations Date Debit Credit 2018 2. Journalize these three transactions on the books of Sperrey Motors. Show all amounts in millions of dollars (rounded to the closest million), and include an explanation for each entry. (Enter amounts in millions as provided to you in the problem statement. Round answers to the closest million. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin with the purchase of the investment in Bionic. Journal Entry Accounts and Explanations Date Debit Credit Jan 10 Cash Consolidation method Investment Revenue Dividend Revenue Next, record the Equity-method Investment Equity-method Investment Revenue Date Investment in Subsidiary Debit Credit 2018 Now record the cash dividends received. Journal Entry Accounts and Explanations Date Debit Credit 2018 3. Post to the Equity-Method Investment T-account. What is its balance after all the transactions are posted? (Enter amounts in millions as provided to you in the problem statement.) Equity-Method Investment Balance Dividends received Net Income Purchase inter any number in the input fields and then continue to the next question. 3. Post to the Equity-Method Investment T-account. What is its balance after all the transactions are posted? (Enter amounts in millions as provided to you in the problem statement.) Equity-Method Investment Balance Dividends received Choose from any list or enter any numb Net Income Purchase d then continue to the next