On January 1, Lifestyle Pools purchased 30% of Marshall Fences common stock for $520,000 cash. By the end of the year, Marshall Fence reported net income of $142,000 and paid dividends of $42,000 to all shareholders.

Required:

1. For Lifestyle Pools, what are the financial statement effects of the initial investment in Marshall Fence?
2. For Lifestyle Pools, how will its share of Marshall Fences net income and dividends for the year affect its financial statements?

On January 1, Lifestyle Pools purchased 30% of Marshall Fence's common stock for $520,000 cash. By the end of the year, Marshall Fence reported net income of $142,000 and paid dividends of $42,000 to all shareholders. Required: 1. For Lifestyle Pools, what are the financial statement effects of the initial investment in Marshall Fence? 2. For Lifestyle Pools, how will its share of Marshall Fence's net income and dividends for the year affect its financial statements? Complete this question by entering your answers in the tabs below. For Lifestyle Pools, what are the financial statement effects of the initial investment in Marshall Fence? Note: Amounts to be deducted should be indicated by a minus sign. Complete this question by entering your answers in the tabs below. What financial statement effects does Marshall Fence's reported net income have on Lifestyle Pools? Note: Amounts to be deducted should be indicated by a minus sign. Complete this question by entering your answers in the tabs below. What financial statement effects does Marshall Fence's reported dividend have on Lifestyle Pools? Note: Amounts to be deducted should be indicated by a minus sign